Strike Force Arrests Pharmacy Owner in ‘Massive’ Kickback Scheme

MIAMI–In the latest Medicare Fraud Strike Force action in South
Florida, a pharmacy owner has been charged with paying out more
than $1 million in kickbacks in what investigators called “a
massive kickback network” involving pharmacies, DME companies and
physicians, federal officials announced Aug. 3.

According to the U.S. Attorney’s Office for the Southern
District of Florida, Juan Carlos Castaneda, who owned and operated
International Surgical-Med Pharmaceuticals, a Miami pharmacy, paid
illegal kickbacks to numerous DMEs for patient referrals from 2000
to 2004.

Castaneda allegedly had International Surgical employees deliver
respiratory medications to the referred patients on a monthly
basis, then billed Medicare for the medication cost. Castaneda
would kickback about half of the Medicare payment to the DME owners
as a referral fee.

To get cash to pay the kickbacks, Castaneda had relatives cash
checks from accounts of Medicare funds, authorities said.

Castaneda faces one count of conspiring to violate the Medicare
anti-kickback statute and two counts of paying illegal
kickbacks.

For more on the Strike Force, see HomeCare Monday, May 14.