Michigan pharmacy CEO and employees indicted in $60 million fraud

February 14, 2014

A federal grand jury has indicted a Michigan pharmacy CEO and several of its employees in a $60 million fraud case in which drugs previously dispensed to nursing homes and adult foster care homes were restocked and resold.

A federal grand jury has indicted a Michigan pharmacy CEO and several of its employees in a $60 million fraud case in which drugs previously dispensed to nursing homes and adult foster care homes were restocked and resold.

According to U.S. Attorney Patrick Miles, Jr. in Grand Rapids, Mich., the grand jury charged Kim Mulder, the CEO of Kentwood Pharmacy, and 13 pharmacy employees.

Mulder is accused of conspiring with Richard Clark, the pharmacy’s director of sales, and pharmacist Lawrence Harden to return, restock, and redispense drugs. The drugs had been returned from nursing homes and adult foster care homes.

 

 

The alleged scheme is believed to have defrauded Medicare, Medicaid, and Blue Cross Blue Shield of Michigan. Kentwood Pharmacy is believed to have received at least $70 million from the two programs, and federal prosecutors are seeking $60 million from the pharmacy.

The government alleges that the pharmacy staff members sorted the returned drugs at off-site locations, including a strip mall office and the basement of Harden’s home.

Last year, three pharmacists who worked part-time at Kentwood Pharmacy were fined between $15,000 to $30,000 each for their roles in the alleged scheme.

Other employees charged included Richard Clarke, vice president of sales; Jessica Veldkamp, pharmacy floor manager; Elizabeth Morgan, billing manager; Erin Rivard, staff pharmacist; Michelle Shedd, sales representative; Heather Harden, drug packer; and Gary Franks, distribution manager.