Hattiesburg, Miss. – Thomas Edward Spell, 50, a Ridgeland resident, has pleaded guilty to a Criminal Information outlining his role in a more than $240 million dollar scheme to defraud TRICARE, the health care benefit program serving our nation’s military, veterans, and their respective family members.
The scheme, led by Spell and his co-conspirators, operated between August 2014 and January 2016, and involved marketing compounded medications at pharmacies owned and operated by Spell in Madison County, Mississippi, and several other locations across the United States.
Instead of formulating compounded medications based on the individualized needs of patients, formulas were selected to maximize profit based upon reimbursements from TRICARE and other health care benefit programs.
Spell’s pharmacies submitted fraudulent claims to TRICARE and other health care benefit programs, resulting in millions of dollars in false payments.
“Ripping off our veterans and members of the military is despicable, and that is exactly what this defendant and others have done by defrauding TRICARE and the American taxpayer,” said U.S. Attorney Mike Hurst. “Rest assured that we will hunt down all those who commit this type of fraud and we will not stop until such criminals are brought to justice.”
“Spell’s guilty plea today proves that the scheme to defraud TRICARE, and the taxpayers who fund its services, operated throughout the highest professional levels in the medical and pharmaceutical industries,” stated Thomas J. Holloman, III, Acting Special Agent in Charge, IRS – CI.
“This guilty plea, resulting from the aggressive and tireless efforts of DCIS special agents, was part of a complex and widespread investigation with other law enforcement partners that brought to justice numerous defendants who believed they could get away with scheming to fleece the Department of Defense of hundreds of millions in taxpayer dollars,” said Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service.
Spell is scheduled to be sentenced by Judge Keith Starrett on October 16, 2018, at 10:30 a.m.
Defendant: Thomas Edward Spell, Jr.
Criminal Charges: Conspiracy to commit health care fraud
City and State: Hattiesburg, Mississippi
Exact Date: August 2014 – January 2016 (scheme duration)
Exact Date: October 16, 2018 (sentencing date)
Sentence: To be determined
Dollar Amount: $240 million
Key Facts
- State: Mississippi
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
