Delco Man Charged In $20M Medicare/Medicaid Fraud Scheme: PA AG

FOLSOM, PA — A Delaware County man is among nine charged in connection with a $20 million Medicaid and Medicare fraud scheme stemming from a South Philadelphia neighborhood pharmacy.

Christian Bengermino, 36, of Folsom, is charged with Medicaid fraud, dealing in unlawful proceeds, theft by deception, conspiracy, and other offenses, according to the Pennsylvania Attorney General's Office.

Pennsylvania Attorney General Michelle Henry said Elizabeth Thompson, the registered owner of Broad Street Family Pharmacy, and her husband, Peter Dello Buono — who oversaw daily operations along with pharmacist Frank Bengermino — are charged with engineering the scheme, from 2016 to 2021, which involved fraudulent claims to the federal benefits programs for expensive medications. In reality, the pharmacy allegedly filled very few of the prescriptions and instead paid their customers cash in exchange for bringing their prescriptions to the pharmacy.

The conspiracy also involved paying kickbacks to consumers selling back pills to the pharmacy in exchange for cash and other medications.

The total amount of fraudulent claims — primarily for the antipsychotic, Latuda, and high-reimbursement HIV medications — exceeded $20 million.

The 50th Statewide Investigating Grand Jury issued a presentment for the charges following a joint investigation conducted by the Pennsylvania Office of Attorney General Medicaid Fraud Control Section and the U.S. Department of Health and Human Services Office of Inspector General.

Charged are

• Peter Dello Buono, 70, of Philadelphia
• Elizabeth Thompson, 70, of Philadelphia
• Frank Bengermino, 70, of Philadelphia
• Berry Davis, 59, of Philadelphia
• Brian O’Hara, 52, of Philadelphia
• Michael McCue, 68, of Philadelphia
• Christian Bengermino, 36, of Folsom
• Evan Gusz, 54, of Glenside

All are charged with Medicaid fraud, dealing in unlawful proceeds, theft by deception, conspiracy, and other offenses. Angelo Amorosi, 62, of Philadelphia, is charged with dealing in unlawful proceeds and conspiracy.

Some are also charged with violations of the Controlled Substance, Drug, Device, and Cosmetic Act and violations of the Pharmacy Act.

Broad Street Family Pharmacy was licensed to provide services to Medicaid and Medicare consumers. While Thompson owned the pharmacy, her husband operated it, even though his pharmacist license was previously suspended, and he was not allowed to be a provider under the Medicaid and Medicare benefit programs. To circumvent this, Frank Bengermino, who possessed a valid pharmacist license, was the managing pharmacist at the pharmacy.

The scheme was based on billing expensive medications to Medicaid and Medicare, even though very little of the medications were actually acquired and disbursed at the pharmacy. The scheme also involved consumers (with prescriptions for the high-reimbursement medications) being paid illegal kickbacks — in cash, primarily, but also with medications — to sell back their prescriptions to the pharmacy. The pharmacy ceased operations and closed its doors shortly after agents executed a search warrant at the location in the autumn of 2021.

Investigators estimate that the involved medications – Latuda and HIV medications – accounted for approximately 86 percent of the Broad Street Family Pharmacy’s billings to Medicaid over the five-year period.