George Tompkins , a Texas pharmacist from Houston, was recently given a 10-year prison term after a jury convicted him of multiple felony counts, including health care fraud, money laundering and wire fraud. Known as the “compound king”, the 75-year-old was also convicted of conspiracy to pay and receive kickbacks. Mr. Tomkins was first arraigned on the 17-count indictment back in February 2018.
The evidence received by the court during the 6-day jury trial suggested that Mr. Tompkins, working with others, devised a health care prescription fraud scheme whereby they unlawfully received almost twenty-two million dollars in government payments for prescriptions that were medically unnecessary. The money was paid to Tomkins by the Department of Labor, and most of the prescriptions were given to patients referred to them by and through their contract to provide such services to state and federal employees. The payments were contracted through the Federal Employees Compensation Act program (FECA). Many hundreds of patients were involved in this prescription fraud scheme.
To assist in their criminal enterprise, Mr. Tompkins and his cohorts created a couple different shell companies through which much of the fraud was run. They used these companies to launder their ill-gotten proceeds. Part of the fraud involved continuing to ship prescriptions to their “patients” even after they had repeatedly been told to stop sending them.