Two Florida men were sentenced for their roles in a multi-million dollar health care fraud scheme.
Peter Bolos, 44, of Tampa, was sentenced to 14 years in prison for conspiracy to commit health care fraud, 22 counts of mail fraud and the introduction of a misbranded drug into interstate commerce, according to a May 18 Department of Justice news release. He also must pay more than $24.6 million in restitution and $2.5 million in forfeiture. Michael Palso, 48, of Tampa, was sentenced to 33 months in prison and ordered to pay more than $24.6 million in restitution.
"The significant sentences imposed by the court are a reflection of the gravity of the crimes that the defendants in this case committed," Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division's Consumer Protection Branch, said in the release. "The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes."
Bolos, Palso and their co-conspirators including Scott Roix, Andrew Assad, Larry Smith, Arun Kapoor, Mihir Taneja and Maikel Bolos, in addition to various companies they owned or controlled, reportedly deceived pharmacy benefit managers "regarding tens of thousands of prescriptions," according to the news release. Pharmacy benefit managers, who process and approve prescription drug claims on behalf of insurance companies, were defrauded into authorizing millions of dollars' worth of claims through insurers such as Blue Cross Blue Shield, Medicaid and TRICARE.
"The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the court's prison sentences reflect the seriousness of their crimes," said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee, according to the release. "The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice."
"This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources," Special Agent in Charge Joseph E. Carrico of the FBI's Knoxville Field Office said in the release. "The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice."
