The former manager of a McAllen-based company is accused of facilitating a kickback scheme involving the ordering of toxicology tests and prescription medication.
Chismere Mallard, the former manager of CLS Devices LLC, a company no longer in existence, is charged with conspiracy to defraud the United States tied to the alleged kickback scheme. The scheme allegedly also involves an unnamed doctor, the doctor’s son, and two employees of the doctor’s clinic, according to a criminal information document filed Friday.
Federal prosecutors allege that beginning around 2014, Mallard made an arrangement with the doctor and his son through which the doctor would order toxicology tests from companies associated with Mallard in exchange for kickbacks.
To do that, from around 2014 through 2019, Mallard was allegedly hired as an account representative with various toxicology testing companies that would pay him based on the number of claims that were paid to the company for toxicology tests.
The doctor and his son then allegedly ordered toxicology tests for patients from those companies.
Two clinic employees also allegeldy took part by directing toxicology tests that were ordered by the doctor to those companies and, in exchange, they also were paid kickbacks, according to the criminal information.
Later, around 2016, the doctor’s son allegedly approached Mallard about another kickback scheme involving prescription compound medication.
The doctor’s son allegedly told Mallard that the doctor would write prescriptions for compound medication that would be sent by the two clinic employees to an unnamed pharmacy. Some of those prescriptions were written for patients that were Medicare beneficiaries.
In turn, the pharmacy would pay Mallard a commission from which he would be required to pay a kickback to the doctor and his son.
Throughout the scheme, Mallard allegedly paid the doctor an estimated $1,000 per month from kickbacks for the prescription medication while the two employees allegedly each received $250 per month in connection to both schemes.
Mallard, himself, allegedly received approximately $766,310.49 in commissions for the toxicology tests and the prescriptions.
Additionally, prosecutors allege that around Sept. 23, 2016, Mallard’s company, CLS Devices, issued a check of $20,079.55 to the docotor’s son.
Mallard and his attorney, George R. Milner III, did not immediately respond to a request for comment Monday.