Pharmacy owner could face 130 years in prison for Medicare fraud

April 28, 2008

A Miami pharmacy owner has been convicted of defrauding Medicare.

Gustavo Smith, owner of Medstar pharmacy in Miami, has been convicted of defrauding Medicare to the tune of $3 million. Among the charges he faced were submitting false claims and money laundering. During the trial, patients whose names were used by Medstar to bill Medicare, testified that they never received any durable medical equipment and did not have a medical need for it, while doctors said they never ordered certain pharmaceuticals or DME. Smith is awaiting sentencing; he could face a maximum sentence of 130 years in prison.

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