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Philadelphia Stunned by $20 Million Fraud Scandal as Nine Individuals Charged in Brazen Scheme


In a major development, Pennsylvania Attorney General Michelle Henry announced charges against nine individuals linked to a $20 million Medicaid and Medicare fraud scheme involving a South Philadelphia pharmacy. The case revolves around Broad Street Family Pharmacy, owned by Elizabeth Thompson and operated by her husband, Peter Dello Buono, and pharmacist Frank Bengermino.

The alleged scheme, running from 2016 to 2021, involved submitting fraudulent claims for costly medications like Latuda and high-reimbursement HIV treatments. Prosecutors claim most prescriptions were never filled, with customers instead paid cash or other medications to bring their prescriptions to the pharmacy. Kickbacks were allegedly given in exchange for selling pills back to the pharmacy. Investigators estimate that 86 percent of the pharmacy’s Medicaid billings were related to the drugs in question.

Attorney General Henry described the operation as a “sophisticated scheme” aimed at defrauding federal programs. Charges include Medicaid fraud, conspiracy, theft by deception, and dealing in unlawful proceeds. Notably, Dello Buono continued to operate the pharmacy despite his suspended pharmacist license and prohibition from Medicaid and Medicare services.

The pharmacy closed down in 2021 after a search warrant was executed. The case resulted from a joint investigation by the Pennsylvania Office of Attorney General’s Medicaid Fraud Control Section and the U.S. Department of Health and Human Services. All defendants are considered innocent until proven guilty in court. Assistant Chief Deputy Attorney General Mark Levenberg is leading the prosecution.

For updates on this case and other news in Chester County and the surrounding area, stay tuned to MyChesCo on Google News and MSN.

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Photo credit www.mychesco.com

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