Joe David May, Prescription Kickback Scheme, Arkansas 2022

LITTLE ROCK, AR—A Little Rock doctor at the heart of a $12 million scheme to defraud TRICARE will spend the next 102 months in federal prison.

Joe David May, a.k.a. Jay May, 42, of Alexander, was sentenced to 102 months’ imprisonment and ordered to pay more than $4.63 million in restitution to TRICARE, the health insurer for our nation’s military.

A 2020 indictment charged May with twenty-two counts, including conspiracy, wire fraud, mail fraud, violating the anti-kickback statute, lying to the FBI, falsifying records, and aggravated identity theft.

After a six-day trial in June 2022, a jury convicted May on all twenty-two counts.

As part of the scheme, recruiters found military personnel and veterans with TRICARE and filled out prescriptions for compounded drugs in their names—selecting which drugs to supply (usually the most expensive) and how many refills to authorize.

All that was missing were prescriber signatures. So, middlemen routed the pre-filled prescriptions to medical professionals, like May, to be rubber stamped without consulting the ‘patient’ or any regard for whether drugs were needed.

TRICARE paid over $12 million for prescriptions generated in this scheme, part of a wave of fraudulent schemes around the country that saw TRICARE spend over $2 billion for compounded prescription drugs in 2015.

In exchange for thousands in cash kickbacks, May rubber stamped 226 prescriptions for which TRICARE paid over $4.63 million.

All but one of his prescriptions were for ‘patients’ May did not know, never treated, and knew nothing about.

Following the execution of search warrants at compounding pharmacies around the country, May visited the FBI to answer questions about his prescriptions.

May lied by claiming he only signed prescriptions for people he evaluated and denying he received kickbacks.

Obstruction continued when May got a subpoena for prescriptions and related ‘patient’ records.

May turned over but a fraction of the prescriptions he signed and fabricated medical records to make it seem like the drug recipients were really his patients.

Finally, as trial approached, May tried to mischaracterize a $5,000 cash kickback as Oaklawn winnings from the 2015 Arkansas Derby.

May’s nine co-conspirators pled guilty to conspiracy and elected to cooperate with federal law enforcement, with several testifying at trial.

The United States has recovered nearly $8 million in restitution, forfeiture, and fines from the prosecution of May and his co-conspirators.

“Our healthcare system is built on trust, and those who abuse it do so at their peril,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas.

“Dr. May accepted kickbacks, cheated TRICARE, and tried to deceive federal agents investigating his crimes.

Now, he will face the consequences of his actions,” Ross added.

The following co-conspirators have been sentenced:

Name: Derek Clifton; Age: 41; Hometown: Alexander, Ark.; Case No.: 4:20-CR-25; Sentence: 51 months imprisonment, $1.1M forfeiture.

Name: Albert Glenn Hudson; Age: 42; Hometown: Sherwood, Ark.; Case No.: 4:20-CR-129; Sentence: 48 months imprisonment, $1.5M forfeiture.

Name: Donna Crowder; Age: 68; Hometown: North Little Rock; Case No.: 4:20-CR-130; Sentence: 12 months 1 day imprisonment, $18K fine.

Name: Jennifer Crowder; Age: 40; Hometown: Little Rock; Case No.: 4:20-CR-131; Sentence: 12 months home confinement, $89K forfeiture.

Name: Keith Benson; Age: 52; Hometown: North Little Rock; Case No.: 4:20-CR-132; Sentence: 15 months imprisonment, $727K forfeiture.

Name: Kenneth Myers, Jr.; Age: 44; Hometown: Maumelle, Ark.; Case No.: 4:20-CR-25; Sentence: 3 years probation, $68K forfeiture.

Name: Keith Hunter; Age: 54; Hometown: Little Rock; Case No.: 4:20-CR-235; Sentence: TBD.

Source: https://www.justice.gov/usao-edar/pr/arkansas-doctor-sentenced-more-eight-years-federal-prison-accepting-kickbacks