Old Forge Pharmacist Pleads Guilty to Health Care Fraud Charges in Pennsylvania
A devastating case of health care fraud has unfolded in Old Forge, Pennsylvania, with local pharmacist Peter Capitano pleading guilty to charges of defrauding Blue Cross of Northeastern Pennsylvania and Medicaid.
According to United States Attorney Peter Smith, Capitano engaged in a scheme to defraud the two health benefit providers from January 2007 through August 2013. The investigation, initiated by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General in February 2011, has led to a plea agreement with the government.
The charges stem from an alleged scheme in which Capitano submitted claims or caused claims to be submitted for drugs that were allegedly prescribed but did not exist, or for drugs not actually dispensed. The case has been prosecuted by Assistant United States Attorney Michelle Olshefski.
Capitano’s guilty plea comes with a hefty price tag, as he will be required to pay restitution for the loss amount. The maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine.
However, under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational, and medical needs.
The case serves as a stark reminder of the importance of vigilance in the healthcare industry, where the stakes are high and the consequences of deceit can be severe. As the investigation continues, one thing is clear: justice will be served, and those who seek to exploit the system will be held accountable.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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