GRAND RAPIDS, Mich. (WLNS) — A Dimondale man has been sentenced to 12 months and one day in prison for a health care fraud conspiracy charge.

Daniel Brown’s conviction came from an agreement to have expensive and medically unnecessary compounded pain creams and patches prescribed to Michigan State University (MSU) employees that were filled by pharmacies in Mississippi.

The Lansing pharmaceutical sales representative admitted to soliciting a local physician to sign the prescriptions and splitting commission payments that the Mississippi pharmacies paid Brown for directing the prescription to their pharmacies.

The pharmacies charged MSU’s health plan between $2,000 to $3,000 for each prescription.

Brown was cooperative with the investigation and prosecution of the people operating the pharmacies.

Health care fraud raises costs on consumers, hurts businesses, and can subject persons
to unnecessary treatment. Those who schemeto defraud our public and private health care providers, and those who pay and receive kickbacksto influence the generation of medical services, face aggressive prosecution, significant financialpenalties, and the real prospect of prison.”

U.S. Attorney Mark Totten

Pharmacy operators were held criminally responsible in related federal cases in Mississippi for more than $200,000,000 in total claims paid for medically unnecessary compounded medications resulting from illegal kickbacks paid to sales representatives and physicians around the country.

Individuals like Mr. Brown, who enrich themselves through fraud schemes, undermine the healthcare system and drives up costs for everyone. The FBI remains committed to working closely with our law enforcement partners to swiftly and thoroughly investigate such fraud allegations and bring criminals who engage in these schemes to justice.”

James A. Tarasca, Special Agent in Charge of the FBI in Michigan

In addition to his year-long sentence, Brown was sentenced to three years of supervised release following his incarceration and ordered restitution totaling $1,267,418.