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Press Release

Former Pharmacy Owner Sentenced to 75 Months for Fraud Scheme

For Immediate Release
U.S. Attorney's Office, Eastern District of Kentucky

LEXINGTON, Ky. – A Lexington man has been sentenced to 75 months in federal prison for wire fraud, aggravated identity theft, and money laundering.

On Saturday, U.S. District Judge Danny C. Reeves formally sentenced 37 year-old Adam Sloan for his offenses.  He also sentenced Sloan’s girlfriend, Jennifer Houska, 30, to thirty months in federal prison for wire fraud and aggravated identity theft.  Under Federal law, Sloan and Houska must serve at least 85 percent of their sentences.

According to Sloan’s plea agreement, from January 2011 to September 2015, Sloan developed and executed a scheme to defraud Chronic Disease Fund, Inc. d/b/a Good Days from CDF (“Good Days”).  Good Days was a Section 501(c)(3) charitable organization based in Plano, Texas that provided copayment assistance for low income individuals suffering from chronic diseases, including cancer.

As part of the scheme, Sloan used real patient information he acquired through Bluegrass Pharmacy of Lexington, a legitimate business he co-owned until June 30, 2015.  Sloan used names, social security numbers, medical benefit cards, and documentation reflecting the patients’ income to fraudulently enroll patients for benefits from Good Days, based on false diagnoses and prescriptions.  He would then withdraw the funds allocated to those patients to his personal bank account.  Sloan submitted 260 fraudulent applications to Good Days, using personal identifying information for at least 125 real patients, and fraudulently stole approximately $1,129,264.

According to Houska’s plea agreement, she assisted in the scheme by using real patient information to fill out 26 applications for fraudulent benefits.

Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, FBI, jointly announced the sentences.

The investigation was conducted by the FBI.  Assistant U.S. Attorneys Kate Smith and Kate Anderson prosecuted the case on behalf of the federal government.

Updated July 26, 2016

Financial Fraud