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7 companies, 4 men charged in $1B telemedicine fraud scheme

Federal prosecutors say seven companies and four men are charged in a $1 billion telemedicine fraud scheme that deceived tens of thousands of patients and more than 100 doctors.

Posted: Oct 15, 2018 4:13 PM

GREENEVILLE, Tenn. (AP) - Federal prosecutors say seven companies and four men are charged in a $1 billion telemedicine fraud scheme that deceived tens of thousands of patients and more than 100 doctors.

The eastern Tennessee U.S. attorney's office announced the indictment Monday of six Florida companies, a Houston firm and four Florida men on charges of conspiracy to commit health care fraud, introducing misbranded drugs into interstate commerce and mail fraud.

Prosecutors say one company fraudulently solicited insurance information and prescriptions from customers nationwide for pain creams and similar products.

Prosecutors add doctors approved prescriptions without knowing prices of wrongly prescribed drugs were massively marked up. They say the defendants then billed private insurance.

In September, telemedicine company HealthRight LLC and its CEO, Scott Roix of Florida, pleaded guilty to charges in the scheme.

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