U.S. Attorney Christopher R. Kavanaugh | U.S. Department of Justice
The owner of Randy’s Gateway Drug in Cedar Bluff, Virginia, has been sentenced to 18 months in prison following his guilty plea to federal healthcare fraud charges. Randy Yost, aged 72, admitted guilt in May 2024 to charges including healthcare fraud, conspiracy to commit healthcare fraud, and distributing oxycodone. His actions resulted in $1.3 million in losses to the federal government.
Court documents revealed that between April 2016 and June 2023, Yost and others dispensed cheaper generic medications for Schedule II drugs like Oxycontin but billed Medicare, Medicaid, and Tricare for more expensive brand-name versions. Additionally, Yost billed these programs and other insurers for medications not dispensed or returned by patients without reversing the charges.
A government analysis conducted in February 2023 and February 2024 highlighted an adjusted loss of $1,309,515. Consequently, Yost must pay restitution amounts totaling over $1.3 million to Medicare, Virginia Medicaid, and TriCare.
The announcement was made by Acting United States Attorney Zachary T. Lee along with Special Agent Jarod Forget from the DEA’s Washington Division and Virginia Attorney General Jason Miyares.
The investigation involved multiple agencies including the Drug Enforcement Administration (DEA), U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), Virginia Office of the Attorney General-Medicaid Fraud Control Unit (MFCU), and the Department of Defense Criminal Investigative Service-Office of Inspector General (DCIS-OIG).
Special Assistant United States Attorney Janine Myatt along with Assistant U.S. Attorney Danielle Stone prosecuted this case.
