3 Former Execs Indicted From Pharmacy With Jersey Shore Ties

BERKELEY, NJ — Three former executives of a Louisiana pharmacy were charged in a 24-count federal indictment for defrauding New Jersey and military health-benefits programs, officials announced Thursday.

This is the second indictment in the past week alleging Central Rexall Drugs in Louisiana played a role in filling medically unnecessary prescriptions for compound medications in New Jersey.

The first alleges several alleged schemes from a Keith Ritson — pharmaceutical sales rep from Bayville — and Dr. Frank Alario, who practiced medicine at medical offices in Bayville, Marlboro, Whiting, New York City and Florida.

Neither are mentioned in the 29-page indictment against the pharmacies three former executives, and it wasn't immediately clear whether they had any involvement. But the cases have similarities.

Indictment Against the Execs

The most recent indictment says Christopher Kyle Johnston, Trent Brockmeier and Christopher Casseri entered into an agreement with Taff in 2013 to commit health-care fraud.

Central Rexall Drugs has faced several legal woes recently involving compound medications — specialty drugs mixed by a pharmacist to meet specific medial needs of an individual patient. CEO Hayley Taff pleaded guilty last month to one count of conspiracy to commit health care fraud.

Johnston and Brockmeier took over management of the pharmacy and expanded the compound-medication business in exchange for 90 percent of the process, according to authorities. Both along with Casseri designed compounded medications and manipulated the ingredients in the medications to obtain higher insurance reimbursements, the indictment said.

They learned that certain insurance plans administered by a "Pharmacy Benefits Administrator" would reimburse thousands of dollars for a one-month supply for certain medications, according to authorities. These included pain, scar and anti-fungal creams, along with vitamin combinations.

The health plans for New Jersey state and local government and education employees — including teachers, firefighters, municipal police officers and state troopers — had this insurance coverage. So did TRICARE, which insures current and former members of the military and their families.

Background

Last week, a federal grand jury returned a 16-count indictment against two people with Berkeley connections. Ritson and Alario were accused of defrauding New Jersey state health benefits programs and other insurers out of more than $2.5 million, according to the indictment. Read more: Pharma Rep From Berkeley, Doctor Charged In $2.5M Scheme

Ritson and Alario recruited people to obtain "very expensive and medically unnecessary" medications from Central Rexall Drugs, according to U.S. Attorney Craig Carpenito.

Like the former Central Rexall executives, they helped get to patients similar compound medications that would get them reimbursements in the thousands, officials said. They also took advantage of the fact that certain New Jersey state and local education employees had insurance coverage for those particular compound medications, Carpenito said.

Ritson and Alario were charged with conspiracy to commit health-care fraud and fire fraud, along with individual acts of health-care and wire fraud. They were also charged with a second conspiracy to wrongfully obtain and disclose patients' individually identifiable health information.

Ritson faces additional charges for conspiring to commit money laundering and substantive counts of money laundering. Alario faces charges of making false statements on health-care matters.

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