News and Press Releases

spencer pharmacist guilty of health care fraud

September 17, 2010

Contact: Peter Deegan

A pharmacist who formerly owned and operated Medicap pharmacy in Spencer, Iowa, defrauded Medicaid and his own health insurance provider and pled guilty on September 17, 2010, in federal court in Sioux City.

David J. Easton, age 57, from Everly, Iowa, was convicted of two counts of health care fraud, one count of money laundering proceeds of his fraud, and one count of aggravated identity theft.

At the plea hearing, Easton admitted that, from about 2003 to 2006, he defrauded Medicaid and Coventry Health Care of more than $200,000 by submitting false claims for prescriptions. He used the identities and ID numbers of Medicaid patients when he submitted false prescription claims to that medical assistance program. Easton used some of the proceeds of his schemes, in one instance a check for more than $44,000, to purchase a Cadillac Escalade.

Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Easton remains free on bond pending sentencing. On each of the fraud and money laundering counts, he faces a maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 3 years of supervised release following any imprisonment. On the identity theft count, Easton faces a mandatory sentence of two years’ imprisonment, to be served consecutively to any prison sentence imposed on the other counts.

The case is being prosecuted by Assistant United States Attorney Janet Petersen and was investigated by agents of the Office of Inspector General for the Department of Health and Human Services and the Internal Revenue Service.

Court file information is available at The case file number is 10-4084-DEO.

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