Inspections, Compliance, Enforcement, and Criminal Investigations
September 7, 2006: Healthcare Fraud Convictions Result in $39 Million in Forfeiture, $33 Million in Fines, $27 Million in Restitution, and Substantial Prison Time
Lisa Godbey Wood, United States Attorney for the Southern District of Georgia, announced today that Bio-Med Plus, Martin J. Bradley III and Martin J. Bradley, Jr. were sentenced in U.S. District Court in Savannah, Georgia by U.S. District Judge B. Avant Edenfield. On March 29, 2006, following a six-week trial, these defendants were convicted by a federal court jury of racketeering, money laundering and other charges in the United States District Court in Savannah, Georgia.
Defendant Martin Bradley III was sentenced to three hundred months (25 years) imprisonment and ordered to pay a fine of $5,000,000.00 and restitution in the amount of $27,804,895.89. Upon release from imprisonment, he will be on supervised release for three years. Defendant Bradley III remained in the custody of the U.S. Marshals pending designation to a federal prison.
Defendant Martin Bradley, Jr. was sentenced to two hundred and twenty-five months (over 18 years) imprisonment and ordered to pay a fine of $1,500,000.00 and restitution in the amount of $25,461,314.89. Bradley, Jr. was allowed to remain on bond for thirty days pending designation to a federal prison.
Defendant Bio-Med Plus was sentenced to five years of probation and ordered to pay a fine of $26,500,000.00 and restitution in the amount of $27,804,895.89. The Bradleys and Bio-Med Plus are also subject to a $39,500,000.00 criminal forfeiture ordered by the Court following the trial.
In addition, Defendant Albert Tellechea was sentenced to sixty months (5 years) imprisonment and ordered to pay a $100,000.00 fine and $3,294,077.00 in restitution. After sentencing, Defendant Tellechea was remanded to the custody of the U.S. Marshals pending designation to a federal prison.
The case arose out of an investigation into the unlawful purchase and sale of prescription drugs, primarily blood derivatives used in the treatment of cancer, AIDS, hemophilia and other critical care illnesses. The evidence at trial showed that from 1996 through 2002, Defendants Bradley III, Bradley, Jr., Tellechea and Bio-Med Plus, a Florida pharmaceutical wholesale distributor, were engaged in the buying and selling of tens of millions of dollars worth of fraudulently obtained prescription drugs, including drugs already paid for by the Florida and California Medicaid programs; drugs defrauded from the Immune Deficiency Foundation’s Safety Net Program; and drugs defrauded from numerous pharmaceutical manufacturers and distributors.
The case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations, the Internal Revenue Service, Criminal Investigations Division, the U.S. Immigration and Customs Enforcement; and, the Attorney General, State of Florida, Medicaid Fraud Control Unit. The Government was represented by Jim Durham, as lead prosecutor, Jeff Buerstatte, Joe Newman and Fred Kramer, Assistant United States Attorneys for the Southern District of Georgia.