An Orange County man has pleaded guilty to submitting nearly $270 million in fraudulent claims over an 11-month span to Medi-Cal for expensive prescription drugs containing generic ingredients that were not medically necessary and, in many instances, not provided to the purported recipients, the Justice Department announced today.
Michael Oloyede, 44, of Orange County, Texas, pleaded guilty to one count of conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison and a $250,000 fine, or both.
The scheme, which was orchestrated by Oloyede between January 2022 and November 2022, submitted nearly $270 million in fraudulent claims to Medi-Cal for expensive prescription drugs that were not medically necessary and, in many instances, not provided to the purported recipients.
The Justice Department alleged that Oloyede and his co-conspirators used a network of corrupt medical professionals and pharmacies to submit fake claims to Medi-Cal, which was then used to pay for the fictitious prescriptions.
As a result of the scheme, Oloyede and his co-conspirators allegedly received over $10 million in kickbacks and bribes from the corrupt medical professionals and pharmacies.
Oloyede’s guilty plea is a significant blow to the scheme, and the Justice Department is continuing to investigate and prosecute those involved in the conspiracy.
The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Texas and the Federal Bureau of Investigation (FBI).
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source â†â€â€ÂÂ
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