Baton Rouge Man Sentenced to 26 Months Imprisonment for Health Care Fraud Scheme

NEW ORLEANS – DONALD PETER AUZINE was sentenced on June 13, 2023 to 26 months of imprisonment to be followed by a 3-year term of supervised release after pleading guilty in federal court relating to his role in a health care fraud conspiracy.

AUZINE, age 51, a resident of Baton Rouge, Louisiana, pled guilty on September 23, 2021 before U.S. District Judge  Susie Morgan to Count One of an indictment that charged him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.

According to the indictment, in or around March 2014, and continuing through in or around October 2016, AUZINE, conspired to knowingly and willfully executing a scheme and artifice to defraud TRICARE, a federal health care benefit program affecting commerce, and other health care benefit programs.

AUZINE was the marketing manager of Prime Pharmacy Solutions (“Prime”), which was located in Slidell, Louisiana.  Prime Pharmacy was mainly a closed-door pharmacy whose business focus was the production of compounded medication.  Such medication, when created properly, involved drugs that were combined, mixed, or altered by licensed pharmacists or other practitioners to meet the specialized needs of individual patients.

Prime’s contracts with various entities, including Pharmacy Benefit Managers (“PBMs”), obligated Prime to collect copayments from beneficiaries in order to be reimbursed by various health care benefit programs, including TRICARE.  Additionally, Prime’s owner worked with AUZINE to market the compounded medications produced by Prime.  AUZINE also found  marketers outside of the state to find beneficiaries willing to receive medically unnecessary compounds and doctors willing to prescribe compounds without medical necessity.

AUZINE also pressured pharmacists to fill prescriptions for beneficiaries where no doctor-patient relationship existed and helped create prescription pads containing the highest value prescription.

Through his fraud, AUZINE received a percentage of Prime’s profits and the reimbursements paid by TRICARE, as well as reimbursements from other health care benefit programs.

“This sentence sends a strong message to those who knowingly defraud the Defense Health Agency for their own selfish enrichment, “stated Special Agent in Charge Darrin Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Southeast Field Office.

"The VA Office of Inspector General is dedicated to ensuring the integrity of VA's healthcare services.  Those who would commit fraud to exploit veteran care and steal taxpayer dollars will be held accountable," said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of Inspector General's South-Central Field Office.  “The VA OIG thanks the U.S. Attorney’s Office for their efforts in this case."

The U.S. Attorney’s Office praised the work of the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General. 

This case was investigated by the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General.  The prosecution was handled by Assistant United States Attorney Kathryn McHugh of the Financial Crimes Unit.