Memphis, TN – A West Tennessee pharmacy has become the focal point of a massive $28 million healthcare fraud investigation. Interim United States Attorney Joseph C. Murphy, Jr. has announced criminal charges against Kossie Lamon Simmons, 59, and Katina Marzie Simmons, 48, both of Collierville, along with Tritia Margalizita Townsend, 47, of Memphis. The trio faces conspiracy to commit health care fraud and wire fraud charges in a scheme targeting the Federal Employees’ Compensation Fund (FECA).
The indictment alleges that SarJo Pharmacy, Inc., owned by Kossie and Katina Simmons, billed FECA for medications that were never dispensed or based on valid prescriptions. Tritia Townsend, as pharmacist, was responsible for the dispensation. The pharmacy fraudulently obtained approximately $28,738,532.90 and was paid out around $16,262,445.70.
The Department of Justice’s 2025 National Health Care Fraud Takedown has cracked down on over $14.6 billion in alleged false billings and seized assets worth over $245 million across the country. Attorney General Pamela Bondi emphasized the severity of such crimes, declaring that “this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering our communities.”
The Simmons couple is charged for their roles as owners and managers, while Townsend, as the pharmacist, is implicated in the illegal dispensation. The case is part of a larger coordinated effort that resulted in 324 defendants facing charges nationwide.
This crackdown on health care fraud highlights the ongoing battle against schemes designed to exploit vulnerable populations and defraud government programs intended for their care. The Health Care Fraud Unit’s National Rapid Response Strike Forces played a critical role, working alongside various U.S. Attorneys’ Offices in the investigation.
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Key Facts
- State: Tennessee
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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