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Medoc Health Services Co-Founder Sentenced for $4.4 Million Prescription Kickback Scheme
Fort Worth, TX – Kevin Douglas Kuykendall, co-founder of Medoc Health Services, was sentenced to 36 months in prison and ordered to pay $4.4 million in restitution for his role in a prescription kickback scheme that cost federal insurance programs over $4.4 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The scheme, which began in 2014, involved Kuykendall and his co-conspirators soliciting illegal kickbacks from Total RX, a Rowlett pharmacy, in exchange for referring prescriptions to the pharmacy. The kickbacks were not disclosed to federal insurance programs, including Medicare, Medicaid, Tricare, and Worker’s Compensation.
Kuykendall and his co-conspirators, including his wife Sabrina Burmester Kuykendall, Mark David Schneider, and Michael Ray Schneider, were found to have knowingly solicited and received illegal kickbacks from Total RX. The scheme ultimately cost federal insurance programs over $4.4 million.
The investigation, which began in January 2020, revealed that Kuykendall and his co-conspirators used a sham employment agreement to conceal the payment of illegal kickbacks on prescriptions paid out by federal insurers. The agreement, which was entered into in early 2015, granted Michael Ray Schneider a 45 percent commission on all prescriptions covered by federal health insurance that were referred by Medoc to Total RX.
Nguyen, the owner of Total RX, initially declined to execute the employment agreement, citing concerns that it specifically tied commission payments to government insurance programs. However, Kuykendall and his co-conspirators convinced Nguyen to sign the agreement, which was used to “paper up” the payment of illegal kickbacks on prescriptions paid out by federal insurers.
The scheme was eventually uncovered, and Kuykendall and his co-conspirators were charged with conspiracy to solicit and receive illegal kickbacks. The scheme has resulted in the sentencing of several defendants, including Kuykendall, who was sentenced to 36 months in prison and ordered to pay $4.4 million in restitution.
The case serves as a reminder of the importance of rooting out corruption and ensuring that those who engage in such activities are held accountable. The U.S. Attorney’s Office for the Northern District of Texas will continue to work tirelessly to protect consumers and uphold the law.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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