John Cruise, Compounding Fraud, Texas 2026

HOUSTON, TX – In a years-long, multi-state scheme to defraud the Office of Workers’ Compensation Programs (OWCP) and TRICARE, nine defendants have been sentenced to prison time for their respective roles in a $126M compounding fraud scheme.

The scheme, which involved compounding pharmacies and patient recruiters, resulted in the submission of false and fraudulent claims for prescriptions to the OWCP and TRICARE. The defendants, including three compounding pharmacy owners, a physician, two pharmacists, and three patient recruiters, chose the particular compounds and other drugs based not on the patients’ medical needs but in light of the amount of reimbursement for the drugs.

John Cruise, 52, of Houston, former co-owner of Assurance Consolidated Pharmacy (ACP), was sentenced to 20 years in prison. LaShonia Johnson, 50, of Houston, a former co-owner of ACP with her husband and co-defendant Cruise, was sentenced to 15 years in prison. Kenny Ozoude, 48, of Houston, former owner of Compounding Solutions LLC, was sentenced to 10 years in prison.

James Don Jackson, 63, of Tyler, Texas, a medical doctor licensed in Texas, was sentenced to five years in prison. Nirvana Hightower, 56, of Houston, a pharmacist licensed in Texas and pharmacist-in-charge at Compounding Solutions LLC, was sentenced to five years in prison. Keith Hudson, 55, of Humble, Texas, a pharmacist licensed in Texas and pharmacist-in-charge at ACP, was sentenced to 3 years in prison.

Audra Jones, 46, of Houston, was sentenced to two years and six months in prison. Terrance Aice, 50, of Carrollton, Texas, a patient recruiter, was sentenced to one year and six months in prison. Sherod Johnson, 44, of Las Vegas, a patient recruiter, was sentenced to one year and six months in prison.

The investigation was conducted by the U.S. Postal Service Office of Inspector General (USPS-OIG), the Department of Labor Office of Inspector General (DOL-OIG), and the Department of Defense Office of Inspector General (DOD-OIG). The case was prosecuted by the Criminal Division’s Fraud Section.

The sentences handed down in this case are a significant blow to those who would seek to defraud the system and exploit patients for financial gain. We will continue to work tirelessly to bring those responsible for such crimes to justice.

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