The U.S. Department of Justice (DOJ) informed that Steven King, 45, from Miramar in Florida, has been sentenced to four and a half years in prison and ordered to pay $21.7 million in restitution for orchestrating a healthcare fraud and wire fraud conspiracy. This scheme involved over $50 million in fraudulent claims submitted to Medicare for dispensing medications that Medicare beneficiaries did not need or want.
Steven King, who was the chief compliance officer of a pharmacy holding company, A1C Holdings LLC, fraudulently billed Medicare for unneeded lidocaine and diabetic testing supplies through a network of pharmacies, including All American Medical Pharmacy in Michigan.
The trial revealed that King and his associates engaged in various deceptive practices to evade scrutiny and maximize profits. These included falsely registering mail-order pharmacies as retail outlets, shipping medication refills without patient consent, concealing ownership details, and illicitly transferring patients between pharmacies. These actions were all part of a calculated effort to continually bill Medicare for high-reimbursing medications and supplies. King’s conviction in June for conspiracy to commit healthcare fraud and wire fraud marks a significant crackdown on healthcare-related financial crimes.
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