ALEXANDRIA, Va. – Dr. Thomas Raley, Jr., 53, of Baltimore, Maryland, was sentenced today to 3 years in prison for accepting illegal kickback payments in return for writing prescriptions for compounded drugs. This comes after Dr. Raley entered into a civil settlement with the Government that requires him and the company he owned to pay $3.1 million.
According to court documents, Dr. Raley was a physician specializing in orthopedic surgery, spine surgery, and comprehensive pain management services, who has practiced in Virginia, Maryland, and elsewhere since 1998. Raley was also the owner of a medical practice, which had offices in both Virginia and Maryland.
In 2013, Raley and Seth Michael Myers, 53, of Crystal Lake, Illinois, began soliciting pharmacists to pay them kickbacks in return for Raley referring expensive compounded medications to the pharmacies. Raley’s first illegal kickback arrangement was with Michael Beatty, 53, of Finksburg, Maryland, who worked as a licensed pharmacist at Fallston Pharmacy in Fallston, Maryland.
Raley chose to pursue other more lucrative illegal kickback arrangements. In and around late 2013, he met with Mohamed Abdalla, 48, of Allendale, New Jersey, who owned multiple pharmacies in northern Virginia, including Medex Health Pharmacy in Falls Church and Royal Care Pharmacy in Fairfax. Then, in and around May 2014, Raley, Myers, and Abdalla cemented their illegal kickback arrangement.
Dr. Raley used his illegal proceeds to fund his and his family’s lifestyle. For instance, he directed Myers to make his wife a salaried employee of the company that was setup to collect the illegal kickback payments. Raley’s wife was provided a salary of $200,000 and the company also used the illegal proceeds to pay for his wife’s lease of a Mercedes.
In a parallel civil resolution, Dr. Raley and Advanced Spine and Pain, PLLC, owned by Dr. Raley at the time, jointly paid $3,159,378.51 to settle civil claims under the False Claims Act, the Virginia Fraud Against Taxpayers Act, and common law remedies.
Defendant Information:
Defendant: Dr. Thomas Raley, Jr.
Criminal Charges: Accepting illegal kickback payments in return for writing prescriptions for compounded drugs
City and State: Alexandria, Virginia
Date: Not specified in the source
Sentence: 3 years in prison
Dollar Amount: $3.1 million in civil settlement
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Key Facts
- State: Virginia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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