News Release
U.S. Department of Justice
United States Attorney
District of Rhode Island
November 19, 2008
Pharmacist admits to illegally buying and
selling pharmaceuticals, defrauding health insurers
Carmine DeTomasis, a pharmacist and co-owner of Prime Drug on Cranston Street, Providence, pleaded guilty today to misbranding drugs, illegally distributing controlled substances, and health care fraud. DeTomasis admitted that he illegally purchased prescription medications from Louis Romanelli and illegally sold pharmaceuticals to Romanelli. DeTomasis also admitted that he submitted false reimbursement claims to health insurance carriers for prescription drugs that the store had not dispensed.
United States Attorney Robert Clark Corrente announced the guilty plea, which DeTomasis entered today before Chief U.S. District Court Judge Mary M. Lisi in U.S. District Court, Providence. Romanelli has pleaded guilty to his role in the drug distribution conspiracy and is awaiting sentencing.
At DeTomasis’ plea hearing today, Assistant U.S. Attorney Adi Goldstein said the government could prove that, on several occasions this year, Romanelli went to Prime Drug, often after business hours, and sold him prescription medications, often medications used in the treatment of HIV/AIDs. An undercover agent had obtained the prescription medications from another pharmacy and had sold the prescription drugs to Romanelli.
Romanelli also obtained controlled substances such as hydrocodone from DeTomasis at Prime Drug.
An examination of Prime Drug’s prescription drug inventory determined that Prime Drug regularly billed insurance companies for more drugs than it had in its inventory and, as a result, submitted fraudulent claims totaling $398,600 to Medicaid, Medicare, Blue Cross Blue Shield of Rhode Island, and other health insurance carriers. According to Romanelli, DeTomasis on several occasions gave him cash in exchange for written prescriptions and did not dispense the medications.
DeTomasis pleaded guilty to conspiracy to commit health care fraud and misbrand drugs, conspiracy to distribute controlled substances, distribution of controlled substances, and health care fraud. The maximum penalties for conspiracy and distribution of controlled substances are five years in prison and a $250,000 fine. The maximum penalty for health care fraud is ten years in prison and a fine of either $250,000 or twice the amount of gain or loss.
DeTomasis must also forfeit to the government $458,600, the proceeds derived from the conspiracy and health care fraud. To satisfy the forfeiture, the government can seize substitute assets, such as the real estate on which Prime Drug is located and DeTomasis’ home on Summit Avenue in Cranston.
DeTomasis, 73, is free on bond pending sentencing, which Judge Lisi scheduled for April 17.
Romanelli, 81, of Providence, pleaded guilty in September to more than a dozen charges in connection with the illegal sale of prescription drugs and controlled substances.
Also awaiting sentencing is Paul Vittorio, a former North Providence Police officer who admitted that he warned Romanelli that he was under investigation. In September, Vittorio pleaded guilty to misprision of a felony, tampering with a witness, and making false statements to federal agents. As a condition of his plea agreement, Vittorio resigned from the North Providence Police Department.
A task force anchored by the Food And Drug Administration, Office of Criminal Investigation conducted the investigation. In addition to FDA-OCI, the following agencies participated: the U.S. Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, the Drug Enforcement Administration, the Rhode Island Attorney General Medicaid Fraud Control Unit, and North Providence Police.