Nurse Pleads Guilty to Mail Fraud in Connection with Compound Pharmacy Fraud Scheme
Jackson, Miss. – Fallon Deneem Page, 37, of Hattiesburg, pled guilty yesterday before Senior U.S. District Judge Keith Starrett to mail fraud in connection with a compound pharmacy fraud scheme, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
In October 2014, Page, a registered nurse, received $100 for each patient she referred to Medical Solutions of Ocean Springs, a company owned and operated by Dr. Shahajan Sultan. Each patient had to have health insurance benefits that would cover the cost of expensive compound medications manufactured and dispensed by a pharmacy located in Jackson County, Mississippi. If the patient was covered by health insurance, Page and others performed cursory medical examinations, sometimes in public locations such as parking lots, playgrounds, and gas stations. During the short assessments, the patients were prescribed expensive compound medications and their insurance companies were billed.
On October 23, 2014, Page provided a patient’s health insurance information to Medical Solutions of Ocean Springs and/or the pharmacy in Jackson County. The patient actually never had a consultation with the doctor. As a result of Page providing the information, the pharmacy shipped via Federal Express the compound medications. Page admitted to knowing there was no medical necessity for the expensive prescriptions, and she further admitted that she knew by submitting the claim, the health insurance company would pay. In total, the insurance company reimbursed the pharmacy for the October 23, 2014, prescriptions approximately $34,047.00.
Page will be sentenced by Judge Starrett on February 26, 2020, and faces a maximum penalty of 20 years in prison and a $250,000 fine.
The case was investigated by the FBI and the Department of Defense Criminal Investigative Service. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk prosecuted the case.