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Four Hudson County Pharmacies Agree to Pay $4.3 Million to Settle Federal False Claims Act Allegations

Hudson County

By: Richard L. Smith 

Four pharmacies operating in Hudson County have agreed to pay a combined $4.325 million to resolve allegations that they violated the federal False Claims Act by billing government health care programs for medications that were never dispensed, according to an announcement by Senior Counsel Philip Lamparello.

The settlement involves pharmacies located in West New York, Bayonne, Union City, and Jersey City. 
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Federal officials contend that inventory records showed the pharmacies did not purchase enough medication from wholesalers to fill the prescriptions they billed to federal health care programs.
 

Under the settlement agreements, Pan American Inc. agreed to pay $3.1 million to resolve allegations that between January 2, 2015, and January 25, 2022, it caused claims to be submitted to Medicare Part D and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries.

 

Mina and St. Moses Pharmacy, doing business as Well Care Pharmacy, agreed to pay $490,000. 

The government alleges that from May 31, 2016, through March 1, 2022, the pharmacy caused the submission of claims to Medicare Part D for medications that were never provided to patients.

 

Farmacia Latina Corp. agreed to pay $375,000 to resolve allegations that from January 2, 2015, through January 24, 2022, it billed Medicare Part D for drugs that were not dispensed.

 

Perfect Care Pharmacy LLC agreed to pay $360,000 to resolve similar allegations, with federal officials asserting that between January 2, 2015, and January 25, 2022, the pharmacy submitted claims to Medicare Part D for medications that were never provided to beneficiaries.

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The settlements resolve the allegations without a determination of liability.