June 5, 2024

DOJ announces 52-month prison sentence for pharmacy owner involved in kickback and money laundering scheme

On May 31, 2024, the U.S. Department of Justice announced the sentencing of Richard Hall, a Texas pharmacy owner, to 52 months in prison for his role in a kickback and money laundering scheme involving TRICARE, a federal program that provides health insurance to service members and their families.  Hall was also ordered to pay more than $59 million in restitution.  The sentence follows Hall’s 2023 conviction by a federal jury in the Northern District of Texas for crimes related to the payment and receipt of unlawful kickbacks, and conspiracy to launder unlawful proceeds.

According to the evidence, Hall conspired with others to create and market compounded medications, which are expensive, custom-blended medications  tailored to the needs of individual patients.  Hall and his co-conspirators allegedly paid marketers to inform area doctors of so-called “investment opportunities,” enabling those who chose to engage in the scheme to write prescriptions for compounded medications for a profit.  Hall allegedly paid illegal kickbacks to the marketers for their services, and conspired to launder the unlawful proceeds in furtherance of the scheme.

DOJ Press Release | Docket – Minute Entry (Sentencing)| Superseding Indictment2