A good marital relationship is usually based on trust, love, and mutual interests. One Texas couple is facing prison time together because of their shared interest in fraud and greed. (Not exactly a solid foundation for a great marriage.)
George “Compound King” Tompkins and his wife, Marene Tompkins, formerly served as owner and vice president of Piney Point Pharmacy in Houston, Texas. The Tompkins used their respective positions to defraud state and federal healthcare programs.
George Tompkins abused his role as a pharmacist to bill the Department of Labor (DOL) for compound gels and creams that were medically unnecessary. He created the scheme alongside co-defendant Anoop Chaturvedi. (The only thing Tompkins wanted to prescribe was funds to himself.)
Together, they plotted to fraudulently prescribe compound cream to injured federal and state employees so that they could bill health care programs. (This continued despite multiple patients complaining that they did not want the cream compounds.)
Tompkins and Chaturvedi fraudulently billed the DOL for $21.8 million for the unnecessary compound prescriptions. (That compound better hold the secret to eternal youth for how expensive it is.)
Tompkins used his company, Wellington Advisors, to launder the money they received from various health care programs. He tried to cover up the kickbacks he was receiving as marketing expenses for Wellington Advisors. (Looks like Tompkins is going to need an exceptional legal advisor.)
George Tompkins was charged and found guilty of conspiracy to pay and receive kickbacks, conspiracy to commit health care fraud, conspiracy to commit money laundering, 11 counts of health care fraud and three counts of wire fraud. He was sentenced to 10 years in prison and is to pay $12,300,381.36 in restitution.
Marene Tompkins pleaded guilty to one count of conspiracy to pay kickbacks. She was sentenced to 30 days of home confinement and three years of supervised release. (Looks like this couple won’t be sharing a prison cell after all and future wedding anniversary celebrations may be tough.) Additionally, she will owe 950,745.10 in restitution.
Co-conspirator Chaturvedi fled from authorities after being charged in an indictment in November 2018. A warrant remains out for this arrest as he is considered a fugitive of the law. He is still considered innocent until proven guilty on the charges related to this case. (Don’t do the crime if you can’t do the time.)
Today’s Fraud of the Day comes from an article, ”Compound King” and Wife Sentenced in $21 Million Health Care Fraud Scheme; Fugitive Sought,” published by Workers Compensation News on July 1, 2020.
Washington, DC (WorkersCompensation.com) – A Houston pharmacist and his wife were sentenced today for their roles in an approximately $21.8 million Department of Labor (DOL) – Office of Workers Compensation Programs and Federal Employees Compensation Act fraud scheme.
George Philip Tompkins, 75, of Houston, Texas, the self-proclaimed “Compound King” and former owner of Piney Point Pharmacy, was sentenced to 10 years in prison. Marene Kathryn Tompkins, 68, also of Houston, the former vice president of Piney Point Pharmacy, was sentenced to 30 days of home confinement and three years of supervised release. Both were sentenced by U.S. District Judge Sim Lake of the Southern District of Texas, who presided over the trial of George Thompkins and the guilty plea of Marene Tompkins. Judge Lake also ordered George Tompkins to pay $12,300,381.36 in restitution (and forfeiture) and Marene Tompkins to pay $950,745.10 in restitution (and forfeiture).