Advertisement

Pharmacy CEO must pay $8.8 million in restitution

The former CEO of a Michigan pharmacy who spearheaded a scheme to restock and resell drugs retrieved from nursing homes and adult foster care homes has been ordered to pay $8.8 million in restitution.

The former CEO of a Michigan pharmacy who spearheaded a scheme to restock and resell drugs retrieved from nursing homes and adult foster care homes has been ordered to pay $8.8 million in restitution.

In August, Kim Mulder of Kentwood Pharmacy was sentenced to 10 years on conspiracy to commit healthcare fraud. Mulder and more than a dozen pharmacy employees were accused of defrauding Medicare, Medicaid, and Blue Cross Blue Shield of Michigan of at least $70 million.

Staff Pick: Minnesota flagging doctor shoppers to healthcare providers

According to prosecutors, the pharmacy employees sorted the returned drugs at off-site locations that included a strip mall office and in the basement of former chief pharmacist Lawrence Harden.   

In December, Harden received six years in prison and a $5,000 fine. He admitted his role in the scheme during sentencing. “I do accept full responsibility,” he told the judge. “I trusted Kim Mulder and I wanted to be something big and he gave me that.”

Advertisement

Richard Clarke, the pharmacy’s former director of sales, was sentenced to 14 years in prison. His sentence included time for a child pornography charge. Prosecutors said Clarke gave some of the drugs to a 16-year-old and then took pornographic pictures of the teenager.

Others implicated in the scheme included 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.

 

Last week, Chief U.S. District Court Judge Robert Jonker ruled that Mulder owes more than $8.8  million in restitution, which is 10% of the $88,207,085 in fraudulent sales the pharmacy made between 2006 and 2010.

Specifically, Judge Jonker ordered Mulder to pay $6,423,768.70 to Medicare; $1,823,681.50 to Medicaid; $58,014.50 to Indiana Medicaid; $475,083 to Blue Cross Blue Shield Michigan; and $40,160.80 to the Federal Employees Health Benefit Program.

The court has not ruled on what, if any, restitution Clarke and Harden will pay.


Advertisement
Advertisement