Another man pleads guilty in huge Mississippi pharmacy fraud

Another Mississippi man charged in a fraud case that federal prosecutors say reaped more than $200 million from a federal military health insurer and others has pleaded guilty.

Posted: Mar 27, 2019 10:35 AM

HATTIESBURG, Miss. (AP) — Another Mississippi man charged in a fraud case that federal prosecutors say reaped more than $200 million from a federal military health insurer and others has pleaded guilty.

Glenn Doyle Beach of Sumrall pleaded guilty Tuesday before U.S. District Judge Keith Starrett in Hattiesburg to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion.

Beach, 46, was an owner and manager of Advantage Pharmacy. Prosecutors say pharmacists there concocted recipes for pain or scar creams that they would make by hand. Such compounded medications are typically tailored to the needs of an individual patient. But in this case, pharmacists tailored them for maximum reimbursement, using expensive ingredients "without regard to the individual needs of the patients," prosecutors said.

Starrett on Tuesday also sentenced former Advantage Pharmacy marketing representative Jay Schaar of Biloxi to 27 months in prison for his role in the scheme. Starrett ordered Schaar to pay $2.2 million in restitution.

Marketers would get health care providers to prescribe the creams. The marketers would sometimes pay prescribers kickbacks that are illegal under federal law, and the prescribers would sometimes write orders for the patients without examining them, according to prosecutors. Pharmacies would often cover patient co-payments in violation of health insurance rules.

The scheme targeted people insured by TRICARE, which covers military members, their families, retirees and some National Guard members and reservists. Prosecutors have said Advantage Pharmacy took in $192 million in revenue from TRICARE alone over several years.

Beach also admitted to faking a paper trail to mislead insurance auditors and working to launder millions in proceeds to conceal the money and evade taxes. He's the 13th person to plead guilty in the scheme since 2017. Two people whom prosecutors have previously identified as central members of the scheme — Chad Barrett and Wade Walters — have not yet been charged. Walters appeared in federal court in San Diego earlier this month to plead guilty on behalf of his company, CFK. The company was convicted of one count of conspiracy to commit false claims, was fined $25,000 and ordered to repay almost $622,000.

Beach had been scheduled to go on trial Tuesday on a 16-count indictment. Instead, he waived indictment and pleaded guilty to two new charges, with prosecutors dropping the old charges. Beach is agreeing to forfeit cash and property worth $9 million.

He's scheduled for sentencing on July 2.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 96032

Reported Deaths: 2894
CountyConfirmedDeaths
Hinds7110159
DeSoto556559
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Jackson348670
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Lee271468
Forrest247872
Jones247579
Washington223872
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Leflore140481
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Pike123451
Monroe122868
Copiah118433
Scott117427
Coahoma115528
Holmes109659
Marshall109517
Lincoln109053
Grenada108336
Yazoo105930
Simpson103346
Union99724
Tate98737
Leake95338
Adams93837
Wayne90021
Pearl River88353
Marion85935
Prentiss85517
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Alcorn80311
George77113
Newton77024
Tallahatchie77021
Winston73819
Tishomingo68238
Chickasaw67924
Tippah66917
Attala65925
Walthall60026
Clay59218
Clarke58746
Hancock58222
Jasper57315
Noxubee54816
Smith53215
Calhoun51512
Tunica48615
Claiborne46316
Montgomery46120
Lawrence43313
Yalobusha43314
Perry42319
Humphreys37715
Greene37517
Quitman3735
Stone37112
Jefferson Davis34111
Webster33813
Amite32910
Carroll31612
Wilkinson30518
Kemper28915
Sharkey26613
Jefferson2439
Benton2263
Franklin1923
Choctaw1856
Issaquena1043
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Alabama Coronavirus Cases

Confirmed Cases: 134231

Reported Deaths: 2357
CountyConfirmedDeaths
Jefferson19572348
Mobile13320292
Montgomery8811183
Tuscaloosa8586117
Madison782078
Shelby592349
Lee588759
Baldwin545650
Marshall393343
Calhoun349942
Etowah343945
Morgan327328
Houston280221
Elmore265947
DeKalb240620
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Walker230683
Talladega214628
Limestone208820
Cullman189020
Dallas178326
Franklin176729
Autauga175725
Russell17573
Lauderdale169833
Colbert164126
Blount160815
Escambia160324
Chilton156431
Jackson156011
Covington138527
Dale135844
Coffee13206
Pike119410
Chambers116142
Tallapoosa115685
Clarke108916
Marion95729
Butler91639
Barbour8737
Winston73812
Marengo71620
Pickens65614
Lowndes65327
Bibb65210
Randolph64213
Hale63428
Lawrence61623
Geneva6074
Cherokee60313
Bullock59914
Monroe5848
Clay5797
Washington55613
Perry5416
Crenshaw53632
Conecuh53511
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Henry4935
Macon48119
Fayette4508
Sumter43519
Lamar3662
Cleburne3646
Choctaw34912
Greene30315
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