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Arrests Made in TRICARE Rx Kickback Scheme

October 27, 2016

TRICARE LogoFederal agents last Friday charged 10 more defendants with fraud and conspiracy in a kickback scheme involving compound drugs and TRICARE, the military health insurance program.

The alleged conspiracy to market and prescribe exorbitantly priced pain and scar creams of doubtful effectiveness and under false pretenses bilked TRICARE out of $102 million in just 21 months, from May 2014 through February this year. This was just one of many companies that sprang to life recently to make fortunes off of unregulated compound drugs.

Defendants here include two physicians – Dr. Walter Neil Simmons, 47, of Mesa, Ariz., and Dr. William F. Elder-Quintana, 50, of El Paso, Texas — as well as owners and marketers of a Dallas-based company called CMGRX.

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