Pharmacist Guilty in $110 Million-Dollar Kickback Conspiracy
Published by the Federal Bureau of Investigation (FBI) on January 17, 2025
A federal jury convicted a pharmacist of conspiracy to receive kickbacks in connection with a $110 million-dollar healthcare fraud scheme, announced Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Rachael A. Honig for the District of New Jersey; and Special Agent in Charge James F. Dennehy of the FBI’s Newark Field Office.
Following a five-day trial in Newark, New Jersey, the jury convicted David B. Adamo, 55, of New Jersey, of one count of conspiracy to receive kickbacks in connection with a federal healthcare program. The jury found that Adamo received kickbacks from Advanced Care Scripts, LLC (ACS), a pharmacy benefit manager (PBM), in exchange for processing and filling high volumes of prescriptions for his customers, including through illegal means.
According to evidence presented at trial, ACS paid bribes and kickbacks to Adamo and other independent pharmacy owners in exchange for funneling Medicare Part D prescriptions to ACS. To induce the pharmacies to fill more prescriptions, ACS offered “guaranteed overrides,” which paid the pharmacies a fixed amount for each Medicare Part D prescription, regardless of the actual cost of the medication. This practice violated federal anti-kickback laws designed to protect the integrity of federal healthcare programs, particularly programs like Medicare Part D that provide prescription drug coverage to seniors and individuals with disabilities.
The evidence at trial also showed that Adamo caused his pharmacies to submit false and fraudulent claims to Medicare Part D, resulting in millions of dollars in improper reimbursements for ACS.
Adamo is scheduled to be sentenced on April 25, 2025. He faces a maximum penalty of five years in prison and a $250,000 fine.
This case was investigated by the FBI’s Newark Field Office and the U.S. Department of Health and Human Services, Office of Inspector General. Trial Attorneys Abigail Kurth and Peter Gaeta of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Desireé Latour of the District of New Jersey are prosecuting the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all forms of healthcare fraud, including kickback schemes, fraudulent billing, and other illegal practices that target federal healthcare programs. More information about the department’s efforts to stop healthcare fraud is available at www.justice.gov/criminal-fraud/health-care-fraud.
Anyone with information about healthcare fraud can report it by calling the National Healthcare Fraud Hotline at 800-HHS-TIPS (800-447-8477).
Pharmacist Guilty in $110 Million-Dollar Kickback Conspiracy
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