TULSA, Okla. – Three physicians and five marketers have been charged in U.S. District Court with violations of the federal anti-kickback statute and other criminal offenses, announced U.S. Attorney Trent Shores. The men allegedly caused federal health care insurance programs to pay reimbursement costs for fraudulent and expensive compounding drug prescriptions written by recruited doctors in return for kickback payments. The defendants would then use the reimbursed funds for their own financial gain.

“Sadly, the American taxpayer ends up paying the price when unscrupulous medical professionals fraudulently bill federal health insurance. In these cases, patients believed they were receiving a compounded cream that fit their specific medical need. In actuality, the charges allege that the drug mixtures prescribed and received by the patients were designed to line the pockets of criminally corrupt doctors with illegally begotten funds,” said U.S. Attorney Shores. “Every dollar we recover from those who defraud federal health insurance programs will be a dollar that goes back to providing healthcare for Americans served by these programs.”

Dr. Krishna Balarma Parchuri, 44, of Tulsa, is charged in a superseding Indictment along with Christopher R. Parks, 57, of Tulsa, Dr. Gary Robert Lee, 58, of Tulsa, and Dr. Jerry May Keepers, 65, of Kingwood, Texas, with conspiracy to commit health care fraud. Keepers and Parchuri are also charged with soliciting and receiving illegal bribes and kickback payments. Parchuri is further charged with obstructing the criminal investigation into the health care offenses.

The criminal indictment alleges that since November 2012, Parks and Lee, engaged in a conspiracy to unlawfully pay kickbacks and bribes to physicians in order to induce the physicians to write expensive compounding prescriptions to pharmacies they controlled, including OK Compounding LLC, in Skiatook, One Stop RX LLC in Tulsa and NBJ Pharmacy LLC and Airport McKay Pharmacy, both in Houston. The defendants then allegedly submitted large claims for payment to federal health care programs and divided the profits. The defendants are accused of causing Tricare to pay reimbursement for false claims in the total amount of $3,207, 514.97; Medicare in total of $285,776.87; FECA Program in total of $552,544.55; and CHAMPVA in total of $310,273.64.

Compounding prescriptions is a practice in which a pharmacist or physician combines ingredients of multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies. Compounded drugs are not to be mixed or marketed in bulk.

The charges allege that, in some cases, physicians were provided pre-printed prescription pads that listed compounding formula choices. Participating physicians allegedly checked a box with their preferred selection and then faxed it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.

Parchuri, an orthopedic surgeon practicing in Tulsa, Oklahoma, and a doctor of osteopathic medicine licensed in Arizona, Kansas, Oklahoma, Florida, and Texas, received kickbacks and bribes in varying amounts up to $50,000 per month from Parks and Lee in exchange for writing compounded drug prescriptions that were submitted to pharmacies controlled by the two men. 

Keepers allegedly solicited and received more than $860,000 in illegal bribe and kickback payments from Parks and Lee.

According to the indictment, kickback payments were disguised through various sham business arrangements, including contracts where physicians purported to serve as “medical directors” or “consulting physicians” for the pharmacies. Doctors were also recruited as “medical directors” for a university study. In actuality, the sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. Additionally, limited liability companies (“LLCs”) were created, owned and operated by the corrupt pharmacies/marketers and physicians who submitted the compounding prescriptions. After the pharmacies received payments for the illegal prescriptions, the conspirators transferred the profits to the LLCs to be divided among the conspirators.

Jonathon Yates Boyd III, 47, of Sugarland, Texas, is charged in an Information for conspiring to pay health care kickbacks. In 2012, Boyd formed R&A Marketing LLC, in Houston, Texas, and began recruiting physicians to write prescriptions for compounded drugs. From November 2012 to September 2014, Boyd conspired to pay kickbacks and bribes to physicians to induce them to write prescriptions for expensive compounded drugs and to submit those prescriptions to pharmacies controlled and operated by Parks and Lee. The conspirators then submitted large claims for payment to various federal health care programs and divided the profits from the federally-paid claims. Boyd was paid a commission based upon the reimbursed prescriptions.

The kickback payments were allegedly disguised through fraudulent business arrangements. Contracts were created between the corrupt pharmacies and physicians for services as “medical directors” or “consulting physicians” to the pharmacies. In actuality, the doctors did not provide the services. The sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. R&A Marketing and the pharmacies were each responsible for their prearranged portion of the kickback payments.

Daniel Richard Ferguson, 47, of Broken Arrow; John Richard Frohrip, 52, of Tulsa; and Kevin Ellis Partin, 49, of Bixby are charged in three separate Informations with offering or paying health care kickbacks. On March 30, 2015, the men allegedly paid a physician a $15,000 check payment from an account controlled by Brookhaven Specialty Pharmacy, LLC, which constituted a kickback in return for the physician referring patients to Brookhaven for compounding prescriptions that would be reimbursed by the federal health care program Tricare.

Conspiracy to violate the anti-kickback statute carries a possible maximum sentence of five years in prison and a $250,000 fine, while violating the anti-kickback statute carries up to 10 years in prison and a $100,000 possible fine. A conviction of health care fraud without injury or death also carries a possible maximum of 10 years in prison, but if resulting in injury or death, the maximum penalty climbs to 20 years or life in prison, respectively.

Assistant U.S. Attorneys Melody N. Nelson and Richard M. Cella are prosecuting the cases. The Department of Labor- Office of Inspector General (OIG), IRS - Criminal Investigation, U.S. Postal Service- OIG, Department of Veterans Affairs- OIG, FBI, the Department of Health and Human Services-OIG, and Defense Criminal Investigative Service conducted the investigation.

United States Attorney Trent Shores announced today the results of the June 2019 Federal Grand Jury B.

The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Ken Lee, Veng Xiong, Xiongkou Her, and Kosh Kash Cannady Lor- Superseding Indictment. Drug Conspiracy; Possession of Firearms in Furtherance of a Drug Trafficking Crime (2 Counts); Felon in Possession of a Firearm. Ken Lee, 24; Veng Xiong, 32; Xiongkou Her, 23; and Kosh Kash Cannady Lor, 24, all of Tulsa, are charged with conspiring to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. Lee and Her are also charged with possessing a Glock .40 caliber semi-automatic pistol and a Taurus .38 caliber special revolver in furtherance of their drug trafficking crimes. Xiong and Lor are charged with possessing a Winchester 12 gauge shotgun and associated ammunition in furtherance of their drug trafficking crimes. Xiong is further charged with being a felon in possession of a Winchester 12 gauge shotgun, a ROMARM/CUGIR 7.62x39 mm semi-automatic rifle, a Glock .40 caliber semi-automatic pistol, and a Taurus .38 caliber special revolver. The investigative agencies are the Osage Nation Tribal Police, Osage County Sheriff’s Office; FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Oklahoma Bureau of Narcotics and Dangerous Drugs, and Oklahoma Highway Patrol.

Krishna Parchuri, Christopher Parks, Gary Lee, and Jerry Keepers- Superseding Indictment. Conspiracy to Offer and Pay, and Solicit and Receive Health Care Kickbacks; Conspiring to Commit Health Care Fraud; Soliciting and Receiving Health Care Kickbacks; Obstruction of Criminal Investigations of Health Care Offense. Parchuri, 44, of Tulsa, Parks, 57, of Tulsa, Lee, 58, of Tulsa, and Keepers, 65, of Kingwood, Texas, are charged with conspiring to offer and pay, and solicit and receive health care kickbacks; and conspiring to commit health care fraud. Keepers and Parchuri are also charged with soliciting and receiving illegal bribes and kickback payments. Parchuri is further charged with obstructing the criminal investigation into the health care offenses. The Department of Labor- Office of Inspector General (OIG), IRS- Criminal Investigation, U.S. Postal Service- OIG, Department of Veterans Affairs- OIG, FBI, the Department of Health and Human Services- OIG, and Defense Criminal Investigative Service conducted the investigation.

TULSA, Okla.— United States Attorney Trent Shores announced today the results of the December 2018 Federal Grand Jury.

The Grand Jury returned seven unsealed indictments, including charges against three men in three separate cases who tried to injure or kill deputies or federal agents, said U.S. Attorney Trent Shores.

James Kent Patrick Hill, 57, of Claremore, and Brian Kirk Marshall, 49, of Pattonsburg, Missouri, both are charged, in part, with obstruction of justice by attempting to kill deputies or federal agents.  Additionally, Gary Dewayne Miller, 44, of Vinita, is charged, in part, with tampering with a law enforcement officer by physical force or threat.

“Close collaborative relationships among prosecutors and local, state, and federal law enforcement are key to fighting crime and making communities safer for the people of Oklahoma and throughout our nation. Criminals attempting to injure or kill a member of law enforcement will be prosecuted and brought to justice,” said U.S. Attorney Trent Shores. “The men and women of law enforcement face threats, both expected and unexpected, at a moment’s notice and still choose to wear the uniform.  I am thankful for their service. The U.S. Attorney’s Office in the Northern District of Oklahoma supports their work and will do our part to hold those criminals accountable who harm our vital law enforcement partners.”

The defendants’ charges are listed below followed by the other December indictments. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

James Kent Patrick Hill. Possession of Methamphetamine with Intent to Distribute; Possession of Marijuana with Intent to Distribute; Possession of Alprazolam and Diazepam with Intent to Distribute; Possession of Firearms in Furtherance of Drug Trafficking Crimes; Obstruction of Justice by Attempting to Kill a Witness; Possession of a Firearm in Furtherance of a Crime of Violence; Felon in Possession of Firearms and Ammunition. Hill faces multiple charges for possession with intent to distribute drugs, including methamphetamine, marijuana, alprazolam, and diazepam. He is further charged with possessing firearms to further his crimes and with being a felon in possession of 10 firearms, including shotguns, rifles and pistols and more than 1,000 rounds of associated ammunition. Finally, Hill is charged possession of a firearm in furtherance of a crime of violence and with attempting to kill a Rogers County Sheriff’s deputy, while trying to escape from law enforcement.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, Verdigris Police Department and Rogers County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Mark R. Morgan is prosecuting the case.

Brian Kirk Marshall. Assaulting Federal Officers; Obstruction of Justice by Attempting to Kill Witnesses; Carrying, Using, and Discharging a Firearm During and in Relation to a Crime of Violence; Possession of a Firearm and Ammunition After a Conviction for a Misdemeanor Crime of Domestic Violence. Marshall is charged with forcibly assaulting FBI agents while they were executing a search warrant of a Kansas, Oklahoma, residence; carrying, using, and discharging a firearm during a crime of violence; and possessing a firearm and ammunition after being convicted of third degree domestic assault in Missouri in 2008. An additional charge of obstruction of justice by attempting to kill FBI agents was added to the original charges that were filed in November.

The FBI is the investigative agency. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.

Gary Dewayne Miller. Felon in Possession of a Firearm and Ammunition; Tampering With a Witness by Physical Force or Threat; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Miller is charged with being a felon in possession of a Ruger, Model P89DAO, 9mm semi-automatic pistol and associated ammunition, brandishing a firearm during a crime of violence, and tampering with a witness by threat of force. Sheriff’s deputies were called to Miller’s residence after shots were fired during a domestic dispute. Miller previously left the residence but returned while deputies were there. When the deputies tried to make an arrest, Miller allegedly fled in his SUV. Miller allegedly brandished a firearm at the deputies, rammed their police cruiser with his own vehicle, and then escaped on foot. He ran back to his home where he barricaded himself with others inside the residence. He was eventually arrested.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, Delaware County Sheriff’s Office and Oklahoma Highway Patrol SWAT Team are the investigative agencies. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case.

December Indictments Continued:

Marcos Gomez-Garcia. Alien Unlawfully in the United States in Possession of a Firearm and Ammunition; Reentry of Removed Alien. Marcos Gomez-Garcia, 37, of Bartlesville, is charged with being an alien knowingly possessing a Smith & Wesson, Model M&P 15-22, .22 semi-automatic rifle. He is also charged with reentry of a removed alien, having returned to the United States unlawfully after being deported on June 20, 2009, at Nogales, Arizona. The weapon was discovered during a traffic stop, where Gomez-Garcia allegedly said he planned to use the weapon to harm someone who had assaulted him earlier that day. The Dewey Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies.

Gary Robert Lee, Christopher R. Parks, and Jerry May Keepers. Conspiracy to Offer or Pay Health Care Kickbacks; Soliciting or Receiving Health Care Kickback; Conspiring to Commit Health Care Fraud. Dr. Gary Robert Lee, 58, and Christopher R. Parks, 57, both of the Tulsa area, are charged with conspiring to pay health care kickbacks to physicians. The two men allegedly bribed physicians to write unnecessary prescriptions for expensive compounded drugs to be submitted to pharmacies the two were affiliated with, including OK Compounding LLC in Skiatook; One Stop RX LLC in Tulsa; and NBJ Pharmacy LLC and Airport McKay Pharmacy, both in Houston. The two then allegedly submitted large claims for payment to federal health care programs and private insurers and divided the profits. Dr. Jerry May Keepers, 65, of Kingwood, Texas, licensed in Oklahoma and Texas, is also named in the indictment. Keepers is charged with receiving kickbacks in exchange for writing prescriptions for compounded drugs, often receiving up to $25,000 per month, and submitting them to pharmacies affiliated with Lee and Parks. All three men are all charged with conspiracy to defraud government health care insurance programs, including Medicare, TRICARE, and the Federal Employees’ Compensation Act. The Defense Criminal Investigative Service, Department of Labor-Office of Inspector General, Internal Revenue Service, U.S. Postal Service-Office of Inspector General, FBI and U.S. Department of Health and Human Services-Office of Inspector General are the investigative agencies.

Timmy Edward Pinkley. Felon in Possession of a Firearm and Ammunition. Timmy Edward Pinkley, 43, of Grove is charged with being a felon in possession of a Hi-Point, Model CF380, .380 Auto caliber pistol and associated ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Delaware County Sheriff’s Office are the investigative agencies.

Gregorio Sanchez-Hernandez. Reentry of Removed Alien. Gregario Sanchez-Hernandez, 43, is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported Jan. 29, 2014, at Del Rio, Texas. Immigration and Customs Enforcement’s Homeland Security Investigations is the investigative agency.

TULSA, Okla.— A grand jury returned an indictment today charging three men, including two physicians, with violations of the federal anti-kickback statute as well as conspiring to commit health care fraud, announced U.S. Attorney Trent Shores. 

“Health care fraud is not a victimless crime. It has a costly effect on the taxpayer and beneficiaries enrolled in Medicare, TRICARE, and workers compensation coverage under the Federal Employees Compensation Act,” said U.S. Attorney Trent Shores. “The Justice Department will not stand idly by while physicians exploit federal programs designed to help American families. I encourage the public to report suspicious health care practices and billing to federal authorities. We will investigate and bring to justice those defrauding our system for their personal benefit.”

The criminal indictment alleges that since November 2012, Christopher Parks, 57, and Dr. Gary Lee, 58, both of Tulsa, engaged in a conspiracy to unlawfully pay kickbacks and bribes to physicians in order to induce the physicians to write compounding prescriptions to pharmacies with whom the two were affiliated, including OK Compounding LLC in Skiatook, One Stop RX LLC in Tulsa and NBJ Pharmacy LLC and Airport McKay Pharmacy, both in Houston. The defendants then allegedly submitted large claims for payment to federal health care programs and private insurers and divided the profits.

Dr. Jerry Keepers, 65, of Kingwood, Texas, is also named as a defendant in the indictment. He is charged with soliciting and receiving over $860,000 in illegal bribe and kickback payments from Parks and Lee and also conspiring with the two men to commit healthcare fraud.

Compounding prescriptions is a practice in which a pharmacist or physician combines, mixes or alters ingredients of a drug or multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies. Compounded drugs are not to be mixed or marketed in bulk.

The indictment alleges physicians were provided pre-printed prescription pads that listed compounding formula choices. Participating physicians allegedly checked a box with their preferred selection and then faxed it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.

Payments to physicians were disguised through various sham business arrangements, according to the indictment. For example, physicians would allegedly enter into agreements with a pharmacy to serve as “medical directors.” However, the physicians would provide no actual services as medical directors, according to the charges. Instead, physicians were allegedly paid kickbacks for writing prescriptions for medications whether or not their patients needed them and sending the prescriptions to pharmacies affiliated with Parks and Lee.  As a result of Parks and Lee’s scheme, federal health care programs suffered a total estimated loss of at least $4.7 million.

Conspiracy to violate the anti-kickback statute carries a possible maximum sentence of five years in prison and a $250,000 fine, while violating the anti-kickback statute carries up to 10 years in prison and a $100,000 possible fine. A conviction of health care fraud without injury or death carries also carries a possible maximum of 10 years in prison, but if resulting in injury or death, the maximum penalty climbs to 20 years or life in prison, respectively. 

Assistant U.S. Attorneys Melody N. Nelson and Richard M. Cella are prosecuting the case.  The Defense Criminal Investigative Service, Department of Labor-Office of Inspector General (OIG), IRS - Criminal Investigation, U.S. Postal Service-OIG, FBI and the Department of Health and Human Services-OIG conducted the investigation.

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.