An Edinburg physician, his son, the owner of a Pharr pharmacy and several others faced healthcare fraud charges Friday for their alleged roles in a $110 million scheme to take kickbacks that defrauded the government, records show.
On Friday, the seven defendants listed in a 15-count indictment, which included one count of attempt and conspiracy to commit mail fraud, 12 counts of healthcare fraud, money laundering, and one count each of conspiracy to defraud the U.S., made their formal respective initial appearances before a magistrate judge.
In the 23-page indictment, the government alleges John Ageudo Rodriguez, 51, a state-licensed pharmacist and owner of Pharr Family Pharmacy on Cage Boulevard in Pharr, billed various federal healthcare programs over a period of multiple years for more than $110 million.
Court documents show he had help from other individuals also listed in the indictment.
Mohammad Imtiaz Chowdhury, 40, of McAllen; Alex Flores Jr., 51, of McAllen; and Hector De La Cruz, 50, of Edinburg, allegedly acted as the three marketers for Rodriguez and his pharmacy. Mohammad Chowdhury also operated an entity known as Echelon Medical Innovations LLC.
According to the indictment, Flores and De La Cruz are state licensed chiropractors by the board of chiropractic examiners.
The marketers for Rodriguez’s pharmacy were the conduits for several-million dollars in kickbacks relating to the referral of prescriptions for high-reimbursing compound drugs to the pharmacy, the federal government alleged in court documents. In numerous instances, the marketers allegedly received kickbacks from Rodriguez, which they shared with referring physicians.
One referring physician, Mohammad Chowdhury’s father, Dr. Tajul Shams Chowdhury, 71, was also implicated in the scheme.
Tajul Chowdhury, a physician with a medical practice in Edinburg known as the Center for Pain Management, has been working at the Center for Pain for nearly 30 years, according to an online profile of the clinic.
The indictment alleges Mohammad Chowdhury paid kickbacks to his father for referring prescriptions to the pharmacy, including prescriptions for high-reimbursing compound drugs that were not medically necessary nor what the patients wanted.
Two of Tajul Chowdhury’s clinic employees, Araceli Gaona, 35, of Mission, and Erika Salinas Vasquez, 38, of Donna, were also indicted in the scheme.
Gaona and Salinas were charged with conspiring to pay and receive kickbacks and conspiracy to commit money laundering in connection with their alleged receipt of kickbacks to help coordinate the flow of prescriptions from the medical clinic to the pharmacy.
“The indictment alleges Rodriguez and his co-conspirators targeted specific health care benefit programs known to pay high reimbursements for compound drugs, such as Federal Employees Compensation Program, TRICARE, Medicare and various private insurance plans,” a news release from the U.S. Attorney’s Office states.
Two other marketers not named but identified as “V.G.” and “J.Y.” in the court document were also mentioned in the indictment.
As part of the scheme, Rodriguez allegedly provided PFP marketers with pre-filled prescription pads intended to be given to physicians.
All of the defendants face all 15 counts against them — except for Gaona and Salinas who only face two charges: counts 14 and 15 which pertain to conspiracy and money laundering, records show.
After their respective initial appearances Friday, the court remanded all into federal custody pending detention hearings that were all set for Monday afternoon, court notes show.
If convicted of health care fraud and conspiracy to commit health care fraud, all named face up to 10 years in prison and a maximum $250,000 possible fine.
The penalty for conspiracy to pay and receive illegal kickbacks is five years with a $25,000 maximum fine. Those charged and convicted of conspiracy to commit money laundering face up to 20 years in prison and a fine of up to $500,000.
