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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Missouri

Thursday, October 18, 2018

Kansas City Physician Sentenced to Prison for Illegal Reselling and Prescribing of Hormones and Steroids

St. Louis, MO – John C. Verstraete, 55 of Kansas City, KS, was sentenced to 12 months imprisonment today in the U.S. District Court in Kansas City, Missouri for health care fraud and illegal prescription of drugs.  Dr. Verstraede appeared before Judge Gary A. Fenner who accepted his plea to health care fraud and distribution of controlled substances outside the scope of legitimate medical practice in April.

Verstraete admitted to prescribing Human Growth Hormone (HGH) to a number of patients who, having received reimbursement for the prescription through their health care plans, resold the hormones back to Verstrade for cash.  This re-sold HGH provided Verstreade’s medical practice with an inventory of HGH which he then resold to other patients for unauthorized purposes.

Verstraete also admitted to obtaining approximately 25,000 units of illegal, anabolic steroids from foreign countries and dispensing them to patients with no medical need for them.  This receipt and prescription practice occurred totally outside the FDA and DEA regulatory oversight process.

Verstraete maintained medical offices at 3215 Main Street in Kansas City.

In response to today’s sentencing, William Callahan, DEA Special Agent in Charge of the St. Louis Division said, “No one, especially a medical professional who takes an oath to practice medicine, is above the law. Those who try to deceive the system and willingly do harm to others by prescribing unnecessary medications will be brought to justice.”

“Health care professionals who illegally distribute prescription drugs and controlled substances may put their patients’ health at risk,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to pursue and bring to justice criminals who jeopardize the public’s health.”

This case has been investigated by the Drug Enforcement Administration and the U.S. Food and Drug Administration.

Health Care Fraud
Updated October 22, 2018