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  1. Press Releases

$2,125,640 Recouped in Civil Settlements for Violations of the False Claims Act from Local Pharmacies in Cidra and Florida, Puerto Rico

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Department of Justice
U.S. Attorney's Office
District of Puerto Rico

FOR IMMEDIATE RELEASE
Wednesday, September 25, 2024

 

SAN JUAN, Puerto Rico – The United States Attorney’s Office reached two settlement agreements with local pharmacies and their respective owners to resolve allegations that they violated the False Claims Act by submitting or causing to be submitted fraudulent claims for payment to the Medicare and Medicaid Programs from October 1, 2021, through September 30, 2023. Farmacia Beatriz, LLC, from Cidra, PR, and Edwin Valentin-Rosario paid $725,640 while CDT Policlínica Familiar Florida and Jesús Vázquez agreed to pay $1.4 million, of which $1.3 million has already been collected.

The allegations involve the pharmacies’ submission for payment of prescription drugs dispensed to patients, under their owner’s direction, in excess of the inventory of prescription drugs purchased by the pharmacies from legitimate wholesalers. As a result, a substantial number of unique claims were submitted for pharmacy services to the Medicare and Medicaid Programs as false representations in violation of the False Claims Act. These transactions could not be tracked to purchases of prescription medications from legitimate wholesalers.

This practice of diverting medications from legitimate channels affects the pedigree of the medications that are ultimately dispensed to patients. It creates uncertainty as to their proper handling, including storage in compliance with regulations and sanitary conditions, thereby potentially affecting the potency and efficacy of the medications. Additionally, federal health care programs were induced to pay for medications that may have been compromised and do not comply with Federal Drug Administration inventory and handling regulations.

The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the District of Puerto Rico, U.S. Department of Health and Human Services, Office of the Inspector General, and U.S. Food and Drug Administration, Office of Criminal Investigations. Other federal and local agencies have also provided support to the investigation.

U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico made the announcement. Assistant U.S. Attorney Rafael López Rivera investigated and prosecuted the matter.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

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