Jury Finds Doctor Guilty in $10 Million TRICARE Scheme

Doctor found guilty in $10M TRICARE scheme involving fraud, conspiracy, and identity theft. Verdict sends a strong message about federal law enforcement's commitment to justice.

In a landmark case, a federal jury has found Dr. Joe David “Jay” May guilty on all 22 counts for which he was indicted, including fraud, conspiracy, identity theft, and other crimes. The Alexander-based doctor was accused of participating in a multi-million-dollar kickback scheme that defrauded TRICARE, the nation’s insurance for veterans. The scheme involved signing off on illegitimate prescriptions for pain cream in order to trigger payments from TRICARE. May’s crimes were described as an abuse of his medical license and a betrayal of his Hippocratic oath. The jury’s verdict sends a strong message about the commitment of federal law enforcement to bring healthcare professionals who defraud the system to justice. Sentencing will be determined by United States District Judge Kristine Baker at a later date.

Table of Contents

Summary

Doctor found guilty in TRICARE scheme

Verdict reached after week-long trial

Crimes involve fraud, conspiracy, and identity theft

Indictment alleges illegitimate prescriptions for pain cream

TRICARE paid over $12 million for compounded drugs

Evidence shows involvement of other individuals

Recruiters paid to find TRICARE beneficiaries

Cash bribes accepted by the doctor

TRICARE reimbursed for unnecessary prescriptions

Statutory penalties for convictions

A doctor by the name of Dr. May has been found guilty in a TRICARE scheme after a week-long trial. The crimes involved in the scheme include fraud, conspiracy, and identity theft. The indictment against Dr. May alleges that he signed off on illegitimate prescriptions for pain cream in order to trigger a payout from TRICARE, the nation’s insurance for veterans. Evidence presented during the trial showed the involvement of other individuals in the scheme, including pharmacy promoters and recruiters. Recruiters were paid to find TRICARE beneficiaries, regardless of whether they actually needed the drugs. The doctor accepted cash bribes and TRICARE was reimbursed for unnecessary prescriptions as a result of the scheme. Convictions in this case come with statutory penalties, including imprisonment, fines, and supervised release.

Background

Introduction to TRICARE

Significance of TRICARE for veterans

Role of doctors in prescribing medications

Importance of legitimate prescriptions

TRICARE is a healthcare program that provides insurance coverage for military personnel, veterans, and their families. It is an essential program that ensures access to healthcare services for those who have served in the armed forces. Doctors play a crucial role in prescribing medications to TRICARE beneficiaries, ensuring that they receive appropriate treatment for their medical conditions. Legitimate prescriptions are essential in maintaining the integrity of the program and ensuring that beneficiaries receive the medical care they need.

Case Details

Overview of the case against Dr. May

Indictment against Dr. May in January 2020

Allegations of signing off on illegitimate prescriptions

Involvement of pharmacy promoter and recruiters

Payments made to find TRICARE beneficiaries

Role of drug sales representatives

Guilty pleas from other individuals involved in the scheme

Amount of money paid by TRICARE for compounded drugs

Number of prescriptions written by Dr. May

Cash bribes accepted by Dr. May

Absence of patient consultation and need assessment

Meeting hosted by recruiter to sign patients up for drugs

The case against Dr. May involves multiple charges related to a scheme that defrauded TRICARE of millions of dollars. In January 2020, Dr. May was indicted for his involvement in signing off on illegitimate prescriptions for pain cream. The scheme involved a pharmacy promoter who paid recruiters to find TRICARE beneficiaries, regardless of whether they actually needed the drugs. These recruiters would then pay medical professionals, including Dr. May, to rubber stamp prescriptions for TRICARE beneficiaries.

Evidence presented during the trial showed that Dr. May wrote 226 prescriptions over the course of ten months, for which TRICARE paid $4.63 million. Most of these prescriptions were supplied by drug sales representatives who were involved in the scheme. Dr. May accepted cash bribes totaling nearly $15,000 and signed off on the prescriptions without consulting patients or determining the medical necessity of the prescriptions.

One particular meeting hosted by a recruiter stands out in the case. At this meeting, held at Fisher Armory in North Little Rock, the recruiter signed people up for the drugs and offered to pay them $1,000. Thirteen patients from this meeting were routed to Dr. May, who signed each prescription. This group alone cost TRICARE $370,000. The conspirators knew that reimbursements from TRICARE might cease in May 2015, so they took advantage of April as the last opportunity to profit from the program. During the last ten days of April 2015, Dr. May signed 59 prescriptions, for which TRICARE paid $1.4 million. It was also revealed in the trial that Dr. May deposited more cash during a single 9-week period at the height of the scheme than he had in 2014 and 2016 combined.

Verdict and Sentencing

Return of verdict by the federal jury

Judgment of guilt on all 22 counts

Role of United States District Judge Kristine Baker

Pending sentencing for Dr. May

Potential penalties for each conviction

Additional punishment for aggravated identity theft

Fines and supervised release as potential penalties

After deliberating for approximately three hours, the federal jury returned a guilty verdict on all 22 counts against Dr. May. The verdict was delivered by United States District Judge Kristine Baker. Dr. May’s sentencing is pending and will be determined by Judge Baker at a later date. Each conviction carries potential penalties, including imprisonment and fines. Dr. May will also face an additional four years of imprisonment for his convictions on two counts of aggravated identity theft. In addition to imprisonment and fines, Dr. May may also be subject to supervised release.

Law Enforcement Perspective

Statement from Jonathan D. Ross, United States Attorney

Abuse of medical license and Hippocratic oath

Commitment to bring healthcare professionals to justice

Collaboration with FBI and HHS-OIG

Importance of protecting healthcare systems

Jonathan D. Ross, the United States Attorney for the Eastern District of Arkansas, released a statement regarding Dr. May’s conviction. Ross expressed his disappointment in Dr. May’s abuse of his medical license and his Hippocratic oath. He assured the public of his commitment to bring healthcare professionals who engage in fraudulent activities to justice. Ross also highlighted the collaboration between the United States Attorney’s Office, the FBI, and the Department of Health and Human Services Office of Inspector General (HHS-OIG) in investigating and prosecuting cases of healthcare fraud. Protecting healthcare systems is of utmost importance to ensure that they serve their intended purpose of providing quality care to beneficiaries.

Statements from Law Enforcement Partners

Statement from FBI Little Rock Special Agent in Charge James Dawson

Lack of integrity displayed by Dr. May

Commitment to protect service members and their loved ones

Working alongside the U.S. Attorney’s Office

Statement from Special Agent in Charge Miranda L. Bennett of HHS-OIG

Importance of holding physicians accountable

Strong law enforcement partnerships

Focus on providing quality care to beneficiaries

FBI Little Rock Special Agent in Charge James Dawson expressed his disappointment in the lack of integrity displayed by Dr. May. He acknowledged the commitment of the FBI to protect service members and their loved ones from corrupt medical professionals. Dawson highlighted the collaborative efforts of the FBI alongside the United States Attorney’s Office in pursuing justice in cases like Dr. May’s.

Special Agent in Charge Miranda L. Bennett of the HHS-OIG emphasized the importance of holding physicians accountable for their actions. She stressed the significance of strong law enforcement partnerships in combating healthcare fraud and ensuring that beneficiaries receive quality care.

Investigation and Prosecution

Agencies involved in the investigation

FBI and HHS-OIG partnership

Prosecution led by Assistant United States Attorneys

Role of Alexander Morgan and Stephanie Mazzanti

The investigation into Dr. May’s TRICARE scheme involved multiple agencies working in collaboration. The FBI and HHS-OIG partnered together to gather evidence and build the case against Dr. May. The prosecution of the case was led by Assistant United States Attorneys Alexander Morgan and Stephanie Mazzanti, who presented the evidence and argued for Dr. May’s guilt.

Related Content

Sentencing of Arkansas Doctor for Kickbacks and TRICARE Fraud

Sentencing of Ringleader in TRICARE Scheme

Sentencing of Florida Man for Misleading Federal Agents

The conviction of Dr. May is not an isolated incident. There have been other cases related to kickbacks and TRICARE fraud that have been prosecuted. These cases highlight the commitment of law enforcement to tackle healthcare fraud and protect the integrity of healthcare systems. The sentencing of individuals involved in these schemes serves as a reminder of the consequences individuals face for engaging in fraudulent activities.

Contact Information

Contact details for Eastern District of Arkansas US Attorney’s Office

For more information or assistance, individuals can reach out to the Eastern District of Arkansas US Attorney’s Office. Contact details are available for those seeking further information or seeking help.