A federal judge entered a judgment on March 16 against Robert L. Crites of Batesville, Mississippi, ordering him to pay more than $31 million for his role in a commission-based referral scheme that targeted federal healthcare programs, according to an announcement by Acting United States Attorney Kevin Davidson on Mar. 19.
The case centers on violations of the False Claims Act and the Anti-Kickback Statute, which are designed to protect federal healthcare programs from fraud and improper financial incentives. Authorities said Crites, owner of Health Services Plus and TriCom, LLC, and a contractor for Extraordinary Scripts, Inc., orchestrated an illegal kickback operation involving patient referrals.
Court records show that Crites and others associated with Extraordinary Scripts identified and referred patients nationwide—primarily TRICARE beneficiaries—to Cloverland Pharmacy in Montgomery, Alabama. In exchange for each referral, the pharmacy paid kickbacks to Crites and his co-conspirators. The Anti-Kickback Statute prohibits offering or receiving compensation for referrals involving federally funded healthcare services.
The judgment against Crites totals $31,039,134.82. This includes $16,342,424.82 in damages—three times the losses sustained by TRICARE—as required under the False Claims Act, as well as $14,696,710 in civil penalties imposed by the court. Officials said Crites was the last remaining defendant; five other co-defendants had previously settled with the government along with others involved in a related civil forfeiture action.
Davidson said this matter reflects ongoing efforts to combat healthcare fraud and protect federal programs: “This matter reflects the government’s ongoing commitment to combating healthcare fraud and protecting the integrity of federal healthcare programs. The False Claims Act remains one of the government’s most effective tools in this effort.” The investigation was conducted by several agencies including the Defense Criminal Investigative Service and Federal Bureau of Investigation.
