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News | Sept. 29, 2020

Owner of Haeoyou Pharmacy Sentenced to 34 Month in Prison and $28 Million in Restitution

By DCAA Staff Writer

The owner of Haeoyou Pharmacy (HP) was sentenced to 34 months in prison for fraudulently submitting more than $62 million in claims to the military's TRICARE health care benefit program for bogus compounded medication prescriptions, which were primarily generated by the payment of large referral fees to marketers. In addition, the owner was also ordered to pay over $28 million in restitution. 

This case was investigated by the Defense Criminal Investigative Service; the FBI; Amtrak's Office of Inspector General; IRS Criminal Investigation, the Office of Personnel Management's Office of Inspector General; the U.S. Department of Health and Human Services - Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; and the California Department of Insurance, with the investigative support provided by auditing personnel of the Defense Contract Audit Agency.

DCAA auditors Michelle A-haja, Kathy Fastenau, and Tony Sek (former DCAA auditor) assisted the investigation by performing various analyses on bank statements, scripts, contracts, billing and payment records.

Read the Department of Justice press release here.