Lake Country Pharmacy, Medicaid Fraud, Georgia 2023
ATHENS, GEORGIA - A civil settlement has been reached with Lake Country Pharmacy and Compounding Center and its principals Chris and Carey Vaughan, announced Charles Charlie Peeler, the United States Attorney for the Middle District.
Lake Country agreed to pay to the United States and the State of Georgia $365,000 to resolve allegations that it violated the False Claims Act and the Georgia False Medicaid Claims Act by submitting bills for compounded medications dispensed to Medicare, Medicaid, and TRICARE beneficiaries that were made with non-reimbursable bulk powders, but were billed as if they were made from reimbursable tablets.
Additionally, Lake Country has entered into an Integrity Agreement with the United States Department of Health and Human Services, Office of Inspector General.
The settlement marks the end of a 36-month investigation into Lake Country's compounding pharmacy business that began with a lawsuit filed by a former pharmacist employed at Lake Country, under the whistleblower provisions of the False Claims Act and the Georgia False Medicaid Claims Act, which allow private citizens to bring civil actions on behalf of the Government and share in any recovery obtained.
The case, United States ex rel. Christopher Coleman and the State of Georgia ex rel Christopher Coleman v. Lake Country Pharmacy & Compounding Center, Chris Vaughan and Carey Vaughan, 3:16-cv-53, was investigated by Special Agent Alexander Hinton of the Department of Health & Human Services, Office of Inspector General, attorney Christina McGarvey of the Department of Health & Human Services, Office of Counsel to the Inspector General, and Investigators Enedelia Bostrup and Shaketia Morgan of the United States Attorney's Office for the Middle District of Georgia.
Lake Country Pharmacy, a compounding pharmacy, submitted bills for compounded medications that were made with non-reimbursable bulk powders, but were billed as if they were made from reimbursable tablets, violating the False Claims Act and the Georgia False Medicaid Claims Act.
The claims covered by the settlement are allegations only, and there has been no determination of liability. The parties agreed to resolve the allegations described herein. Lake Country fully cooperated in the investigation.
Defendant:
Lake Country Pharmacy and Compounding Center, Chris Vaughan, Carey Vaughan
Criminal Charges:
Violating the False Claims Act and the Georgia False Medicaid Claims Act
City and State:
ATHENS, GEORGIA
Date:
2023
Sentence or Outcome:
Lake Country agreed to pay $365,000 to the United States and the State of Georgia
Key Facts
- State: Georgia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →