Houston’s so-called “Compound King” is under federal indictment in a multi-million-dollar health care fraud scheme that exploited federal worker benefit programs for years. George Phillip Tompkins, 73, and his wife Marene Kathryn Tompkins, 66, were arrested Thursday and are set for arraignment today before U.S. Magistrate Judge Dena H. Palermo. Authorities are still hunting for a third defendant, Anoop Kumar Chaturvedi, 46, a legal permanent resident from India, with a warrant outstanding for his arrest.
The trio is charged in a 17-count indictment unsealed Feb. 16, 2018, accusing them of conspiracy to commit health care fraud, health care fraud, wire fraud, money laundering, and violating the anti-kickback statute. The Tompkins operated Piney Point Pharmacy on Fondren Road in Houston, where George Tompkins served as pharmacist in charge and allegedly referred to himself as the “Compound King.” Marene Tompkins held official roles as Vice President, Secretary, and Treasurer of the pharmacy.
From September 2009 through September 2016, the defendants allegedly conspired to funnel compound gel and cream prescriptions to their pharmacy through illegal kickbacks. The prescriptions—many tied to a single physician—were billed to the Department of Labor under the Federal Employees Compensation Act (FECA) program. The pharmacy submitted at least $23,392,281 in fraudulent claims. The DOL paid out $11,663,704 on those false claims, according to the indictment.
Chaturvedi, described in court filings as a businessman with multiple Houston-area ventures, allegedly distributed standardized prescription forms and dictated refill quantities to ensure maximum billing. The indictment details how compound medications—meant to be customized for individual patients—were pushed en masse based on kickback-driven referrals, not medical need. The operation relied heavily on wire communications, forming the basis for wire fraud charges.
“The indictment obtained today should send a clear message to healthcare providers that the government is vigilant and vigorously protecting federal benefits programs from corruption,” said Special Agent in Charge Christopher Cave of the U.S. Postal Service – Office of Inspector General (USPS-OIG), Southern Area Field Office. The USPS-OIG, along with DOL-OIG, IRS-Criminal Investigation, VA-OIG, and DHS-OIG, led the probe. Anyone with information on Chaturvedi’s whereabouts is urged to call USPS-OIG at 1-888-877-7644.
If convicted, the defendants face severe penalties: up to 20 years for money laundering conspiracy, up to 10 years each for health care fraud, conspiracy to commit health care fraud, and wire fraud, and up to five years for conspiracy to pay kickbacks. Assistant U.S. Attorney Julie Redlinger is prosecuting the case, underscoring the federal government’s ongoing crackdown on health care fraud networks operating under the guise of legitimate medical services.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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