Four individuals have pleaded guilty to federal conspiracy charges for their part in a military health insurance fraud scheme.
The Associated Press reported that the scheme generated more than $10 million in fraudulent prescriptions.
The four people – Michael Beeman (48) of Maumelle, Michael Sean Brady (50) and Brad Duke (43) of Little Rock, and Charlotte Leija (38) of Conway – face up to five years in federal prison, US Attorney Cody Hiland said.
According to the authorities, Duke – a medical sales representative working for a pharmacy in Mississippi – paid recruiters to find beneficiaries of the military’s insurance program, Tricare. Brady and Beeman were two such recruiters who were hired by Duke to carry out the scheme. Duke also paid Leija, a medical assistant, to file prescriptions under a doctor's name.
For each patient, Tricare can pay pharmacies thousands of dollars for compounded drugs. By fraudulently producing prescriptions with Leija’s help, Duke collected a share of the payments.
The federal prosecutor's office is expecting more charges to be filed, The Associated Press reported.