Albert Diaz, Compounding Pharmacy Fraud, Mississippi 2023
A Biloxi physician has been sentenced to prison for his role in a $3 million compounding pharmacy fraud scheme.
Albert Diaz, M.D., was sentenced by U.S. District Judge Keith Starrett of the Southern District of Mississippi to 42 months in prison for his involvement in the scheme.
According to evidence presented at trial, between 2014 and 2015, Diaz participated in a scheme to defraud TRICARE and other insurance companies by prescribing medically unnecessary compounded medications, some of which included ketamine, a controlled substance, to individuals he had not examined.
The evidence further demonstrated that, based on the prescriptions signed by Diaz, Advantage Pharmacy in Hattiesburg, Mississippi, dispensed these medically unnecessary compounded medications and sought and received reimbursement from TRICARE and other insurance companies totaling more than $3 million.
The scheme was uncovered after a TRICARE audit, and Diaz was found to have falsified patient records to make it appear as though he had examined patients before prescribing the medications.
The FBI, IRS-CI, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Inspector General, the Mississippi Bureau of Narcotics and other government agencies investigated the case.
Restitution to TRICARE and other insurance companies will be determined at a later date.
Defendant: Albert Diaz, M.D.
Criminal Charges: one count of conspiracy to commit health care fraud and wire fraud, four counts of wire fraud, one count of conspiracy to distribute and dispense a controlled substance, four counts of distributing and dispensing a controlled substance, one count of conspiracy to falsify records in a federal investigation and five counts of falsification of records in a federal investigation.
City and State: Biloxi, Mississippi
Date: 2023 (sentence date not provided)
Sentence: 42 months in prison
Dollar Amount: $3 million
Key Facts
- State: Mississippi
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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