Kevin P. Davidson, U.S. Attorney | U.S. Attorney for the Middle District of Alabama
A federal judge entered judgment on March 16 against Robert L. Crites of Batesville, Mississippi, ordering him to pay more than $31 million for his role in a commission-based referral scheme that targeted federal healthcare programs, according to an announcement by Acting United States Attorney Kevin Davidson on Mar. 19.
The case centers on violations of the False Claims Act and the Anti-Kickback Statute, which are designed to protect federal healthcare programs from fraud and improper financial incentives. Authorities said Crites owned Health Services Plus and TriCom, LLC, and worked as a contractor for Extraordinary Scripts, Inc., where he recruited patients—primarily TRICARE beneficiaries—and referred them to Cloverland Pharmacy in Montgomery, Alabama. In exchange for these referrals, Crites and others received kickbacks from the pharmacy.
The Anti-Kickback Statute prohibits offering or receiving compensation in return for referrals involving federally funded healthcare services. The statute aims to ensure that medical decisions are based on patient needs rather than financial gain.
The judgment against Crites totals $31,039,134.82. This includes $16,342,424.82 in damages—three times the losses sustained by TRICARE—as required under the False Claims Act, along with $14,696,710 in civil penalties imposed by the court. Crites was identified as the last remaining defendant; previous settlements were reached with five other co-defendants and additional parties involved in related civil forfeiture actions.
Officials said this outcome demonstrates ongoing efforts to combat healthcare fraud and maintain integrity within federal health programs. The investigation was conducted by several agencies including the Defense Criminal Investigative Service, Department of Health and Human Services-Office of Inspector General, and Federal Bureau of Investigation. Assistant United States Attorney Stephen D. Wadsworth handled the case.
