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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: 16769

Reported Deaths: 803
CountyConfirmedDeaths
Hinds107426
Madison76728
Lauderdale75968
Neshoba72844
Jones70133
Scott66312
Forrest59539
DeSoto57510
Rankin4569
Leake45212
Holmes44330
Copiah3294
Jackson31415
Attala31118
Yazoo2964
Newton2884
Lincoln28031
Leflore27736
Oktibbeha27314
Harrison2697
Monroe26925
Wayne2623
Lamar2505
Lowndes2479
Pearl River21231
Pike20411
Adams20316
Washington1987
Warren19610
Lee1948
Noxubee1936
Covington1792
Bolivar16911
Jasper1674
Clarke15619
Smith15511
Kemper15511
Lafayette1544
Chickasaw14014
Coahoma1314
Clay1254
Winston1241
Carroll11911
Marion1169
Claiborne1155
Lawrence1071
Grenada1074
Simpson1040
Yalobusha1046
Sunflower923
Tate911
Hancock9012
Union897
Itawamba897
Marshall873
Wilkinson859
Panola843
Montgomery841
Webster844
Jefferson Davis823
Tippah7611
Calhoun674
Amite661
Walthall640
Humphreys637
Tunica583
Prentiss533
Perry513
Choctaw502
Pontotoc473
Jefferson421
Tishomingo360
Greene331
Stone320
Quitman320
Tallahatchie301
George292
Franklin292
Alcorn191
Benton140
Sharkey70
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 19073

Reported Deaths: 672
CountyConfirmedDeaths
Mobile2321118
Jefferson1901104
Montgomery185843
Tuscaloosa83616
Marshall7089
Franklin5858
Lee56234
Shelby52819
Tallapoosa43466
Butler42118
Walker3862
Elmore3749
Chambers36026
Madison3534
Unassigned3062
Morgan3021
Baldwin2939
Dallas2923
Lowndes26512
Etowah26312
DeKalb2573
Autauga2415
Coffee2391
Sumter2287
Houston2265
Bullock2176
Pike2120
Colbert1902
Hale1859
Russell1810
Barbour1771
Marengo1756
Lauderdale1722
Calhoun1673
Wilcox1577
Choctaw15310
Cullman1521
Clarke1492
St. Clair1351
Randolph1287
Dale1240
Marion12411
Pickens1205
Talladega1195
Limestone1080
Chilton1071
Greene954
Macon934
Winston910
Jackson833
Covington821
Henry822
Crenshaw783
Bibb761
Escambia753
Washington736
Blount631
Lawrence510
Monroe462
Geneva440
Perry430
Conecuh411
Coosa401
Cherokee383
Clay282
Lamar280
Fayette160
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