Smart Pharmacy

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anonymous said:
Smart pharmacy is not in any real trouble. You’re allowed to intentionally rip off the government for tens of millions of dollars. You just hire a good attorney to protect what you stole and the government will let you pay a small fine and you get to keep it.

It’s called white collar crime and it’s happens all the time.
Click to expand...

Disgusting
 






Two Convicted For Conspiracy To Commit Healthcare Fraud Related To Kickbacks Involving Compounded Prescriptions And Tricare Beneficiaries
Jacksonville, Florida – A federal jury has found Scott Balotin (51, St. Johns) and Thomas Jones (52, Jacksonville) guilty of conspiracy to commit health care fraud and money laundering. Each faces a maximum penalty of 10 years in federal prison. The sentencing hearings are scheduled for January 18, 2022.

Balotin and Jones had been indicted on October 30, 2019.

According to evidence presented at trial, Balotin owned and operated Casepark, a marketing firm in Jacksonville. Casepark utilized sales representatives to market compounded medication, including creams for pain and scars, to health care benefit program beneficiaries. The creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000, for a one-month supply. Casepark focused its promotional efforts on TRICARE beneficiaries, based upon an understanding and belief that TRICARE would pay claims for the compounded medications. The prescriptions generated for the recruited TRICARE beneficiaries were directed to various pharmacies to be filled. Casepark received approximately 55 percent of the after-cost amount of each claim paid by a health care benefit program to a pharmacy that filled each prescription. Casepark and other alleged co-conspirators paid the sales representatives a percentage of the paid claims they received from the pharmacies.

Other co-defendants who previously pleaded guilty to conspiracy to commit healthcare fraud related to this case include: Pablo Ortiz, Derwin Allen, David Stevens, and Sam Todd.

This case was investigated by the IRS – Criminal Investigation, the U.S. Postal Service – Office of Inspector General, and the Defense Criminal Investigative Service. It is being prosecuted by Assistant United States Attorneys Ashley Washington, Mai Tran, and Julie Hackenberry.
 
























Looking like all of Smart Pharmacy’s financial contributions to Gov. Ron DeSantis, and sleazy attorney tactics are going to result in a slap on the wrist from Collette B. Cunningham. Goes to show that you can steal a hundred million dollars from the government and only have to pay back a small percentage
 






I work in a pain management office here in Jacksonville. Our corporate lawyers and a few of our providers met with two women this past Thursday morning. I’m pretty sure this case isn’t completely over. I work the front desk. One of the ladies gave me her business card to pass along and it said defense criminal investigation services, Jacksonville area of responsibility

When I was in the lunchroom I heard one of our docs talking to our lawyer in his office and he was cursing up a storm because he is planning on going to Europe with his family for the holidays. He said that if he “gets called as a witness for this grand jury he’s gonna to be f’ing pissed! This was almost ten years ago”. Not sure of the specific crimes they were talking about

I was just looking to see if this pharmacy was still in business and stumbled on this website
 






https://www.justice.gov/opa/pr/two-jacksonville-compounding-pharmacies-and-their-owner-agree-pay-least-74-million-resolve

Two Jacksonville Compounding Pharmacies and Their Owner Agree to Pay at Least $7.4 Million to Resolve False Claims Act Allegations
The Justice Department announced today that Smart Pharmacy, Inc., SP2, LLC, and owner Gregory Balotin have agreed to pay at least $7.4 million to resolve lawsuits filed in Jacksonville, Florida, alleging they violated the False Claims Act by adding the antipsychotic drug aripiprazole to topical compounded pain creams to boost reimbursement and by routinely waiving patient copayment obligations. The settlement amount is based on the defendants’ ability to pay.

“When pharmacies inflate their revenue with medically unsupported prescription ingredients, they compromise the quality of patient care and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of federal healthcare programs for personal profit.”

“A primary mission of the U.S. Attorney’s Office is protecting the Medicare and TRICARE programs from fraud,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “This case exemplifies our commitment to pursue pharmacies and pharmacists who abuse federal healthcare programs at the expense of the taxpayers.”

Aripiprazole, which is sold under the brand names Abilify, Abilify Maintena, and Aristada, is approved by the U.S. Food and Drug Administration to treat a number of psychological conditions such as schizophrenia and Tourette’s disorder. The United States alleged that the defendants crushed aripiprazole pills approved for oral use and included them in compounded creams used topically for pain treatment, while knowing that there was not an adequate clinical basis to do so. The defendants allegedly included the drug in the pain creams to increase their profits on prescriptions paid for by Medicare Part D and TRICARE, the federal health care program for active duty military personnel, retirees, and their families. Both Medicare Part D and TRICARE reimburse pharmacies for the individual ingredients included in compounded drugs, thus defendants increased their reimbursement by adding aripiprazole to the combination of drugs used in their pain creams.

The government also alleged that the defendants improperly waived patient copayments to induce patients to accept the pain cream prescriptions. Although copayments may be waived in certain unique circumstances, such as on the basis of an individualized assessment of a patient’s financial hardship, the defendants allegedly routinely waived copayments without regard to patient need.

In connection with the settlement, Gregory Balotin has agreed to enter into a three-year integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which includes an annual claims review by an independent review organization.

“Pharmacies participating in Medicare are obligated to obey laws designed to protect both the integrity of this program and the quality of care provided to patients,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “With our law enforcement partners, our agency is committed to investigating alleged health care fraud to protect both federal health care programs as well as the individuals served by those programs.”

“We are grateful to the U.S. Department of Justice, the U.S. Attorney’s Office, and other state and federal officials for their unwavering commitment to protect taxpayer dollars and safeguard the TRICARE pharmacy benefit,” said Chief Edward C. Norton Jr. of the Defense Health Agency’s Pharmacy Operations Division. “Their efforts ensure our service members, veterans, and their families continue to receive the highest-quality pharmacy benefit commensurate with the service and sacrifice they make for our nation.”

“Health care providers and suppliers that serve our nation’s active duty service members, military retirees, and their families are expected to meet the highest standards of ethical and professional behavior,” said Special Agent in Charge Darrin K. Jones of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and its law enforcement partners will continue to investigate unprincipled health care providers that undermine the integrity of the DoD’s TRICARE program.”

The lawsuits, United States ex rel. Sanchez v. Smart Pharmacy, Inc., et al., No. 14-cv-1453 (M.D. Fla.), and United States ex rel. Kohli v. Smart Pharmacy, Inc., et al., No. 16-cv-387 (M.D. Fla.), were originally filed in the U.S. District Court for the Middle District of Florida by Amy Sanchez and Ashok Kohli, two former employees of Smart Pharmacy. The lawsuits were filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined.

This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG, DCIS, the Department of Veterans Affairs Office of Inspector General, the Department of Labor Office of Inspector General, and the Office of Personnel Management Office of Inspector General.

This matter was handled by Assistant U.S. Attorney Collette Cunningham for the Middle District of Florida, Trial Attorneys Nicholas Perros and Jessica Sievert of the Justice Department’s Civil Division, former Civil Division Trial Attorney Holly Snow (now an Assistant U.S. Attorney for the Western District of North Carolina), and former Civil Division Trial Attorney Andrew Jaco (now with the Justice Department’s Criminal Division).
 






anonymous said:
I work in a pain management office here in Jacksonville. Our corporate lawyers and a few of our providers met with two women this past Thursday morning. I’m pretty sure this case isn’t completely over. I work the front desk. One of the ladies gave me her business card to pass along and it said defense criminal investigation services, Jacksonville area of responsibility

When I was in the lunchroom I heard one of our docs talking to our lawyer in his office and he was cursing up a storm because he is planning on going to Europe with his family for the holidays. He said that if he “gets called as a witness for this grand jury he’s gonna to be f’ing pissed! This was almost ten years ago”. Not sure of the specific crimes they were talking about

I was just looking to see if this pharmacy was still in business and stumbled on this website
Click to expand...

Can confirm that this is ongoing. Feds still digging around on these guys
 






Fla. Judge Grants New Trial In Health Care Fraud Scheme
By Mark Payne
Law360 (November 2, 2023, 9:04 PM EDT) -- A Florida federal judge has granted a new trial to a business owner and one of his alleged patient recruiters convicted in a health care fraud scheme after last-minute evidence emerged about a cooperating defendant's previously undisclosed informant role with the U.S. Drug Enforcement Administration.
U.S. District Judge Marcia Morales Howard on Tuesday granted Scott Balotin and Thomas Jones' request for a new trial. Their motion came after Balotin and Jones learned, 90 minutes before a September sentencing hearing, that cooperating defendant David Stevens was involved in another case and also a confidential source for the DEA, both of which weren't previously disclosed.
"We made certain discovery requests from the government, and in connection with some of those discovery requests, they provided previously undisclosed reports and information with regard to cooperating witnesses who had testified at the trial," said Jones Walker Attorney David Weinstein, who represented Balotin during sentencing.
Balotin was indicted on charges of money laundering and health care fraud conspiracy in 2019 after his marketing firm, Casepark, which sold compound medication such as creams to help with pain and scars to Tricare beneficiaries, was accused of paying sales representatives a percentage of paid claims the firm received from pharmacies.
The creams were sold between $4,000 and $17,000 for a 30-day supply and had a high reimbursement rate for the marketing firm.
"The prescriptions generated for the recruited TRICARE beneficiaries were directed to various pharmacies to be filled," the U.S. Attorney's Office for the Middle District of Florida wrote in a release in 2021. "Casepark received approximately 55 percent of the after-cost amount of each claim paid by a health care benefit program to a pharmacy that filled each prescription."
Jones, a doctor at Casepark alleged to have recruited patients for the scheme, was simultaneously indicted. The men were convicted at trial in 2021.
Stevens, a doctor and recruiter for a pharmacy involved in the alleged scheme, was also named in the original indictment. At the time, Stevens was already working with the DEA as a confidential informant, and when he learned of the charges, he agreed to cooperate.
Attorneys for Balotin and Jones learned of Stevens's DEA role when they requested additional discovery information.
The government provided a Brady/Giglio disclosure letter to Balotin's and Jones' attorneys
https://www.law360.com/articles/1740099/print?section=florida 12/19/23, 1:27 PM Page 1 of 2

that detailed Stevens' involvement in a pill mill investigation in Savannah, Georgia. Stevens had admitted to a role in the pill mill.
"He then began providing cooperation to DEA Savannah about his knowledge of criminal activity generally in the hopes of not being charged in that case," Assistant U.S. Attorney Ashley Washington of the Middle District of Florida wrote in the disclosure letter. "When Mr. Stevens later learned of this case, he also hoped to receive cooperation credit in this [Balotin and Jones health care fraud] case."
The letter further detailed Stevens' knowledge of other criminal conduct in a Jacksonville, Florida case, so he started working with the Jacksonville DEA. In 2019, Stevens also acted as a confidential source in a case in the Fourth Circuit.
During his time as an informant, Stevens divulged information about drug trafficking and bought OxyContin pills as undercover.
Balotin's and Jones' Oct. 16 motion for a new trial outlined further "serious discovery violations," including a previously undisclosed interview the DEA agents conducted with Stevens.
"I would do anything to stay out of jail and remain with my family," Stevens said to agents.
Balotin's and Jones' attorneys wrote in their motion that a jury should know about a witness who would "do anything" to stay out of jail.
"Committing perjury on behalf of the government is among the universe of things that qualify as 'anything,'" the attorneys wrote in the motion.
Balotin now must decide to keep the counsel obtained during sentencing as plans for the new trial move forward, according to Weinstein, who said they're pleased with the results.
"This is the way our system is supposed to work," Weinstein said.
The U.S. attorney's office declined to comment. Jones' attorney didn't immediately respond to requests for comment Thursday.
Balotin is represented by Edward R. Shohat and David S. Weinstein of Jones Walker LLP. Jones is represented by Noel G. Lawrence of Law Office of Noel Lawrence.
The government is represented by Michael J. Coolican of the U.S. Attorney's Office for the Middle District of Florida.
The case is United States v. Balotin et al., case number 3:19-cr-00191, in the U.S. District Court for the Middle District of Florida.
--Editing by Alex Hubbard.
All Content © 2003-2023, Portfolio Media, Inc.
 












I no longer work there, but the hate on this thread is pathetic. For those that didn’t like working there, you could’ve found another job assuming anyone wanted to hire you.

The disdain for Geoff and upper management is classic. Do your job well and no one is gonna bother you.

And for the those that think their moral compass is so great…we weren’t the scum bags, the PMB’s were/are. The cartel of the pharma industry.

Grow up and god bless
 






Saw that one of the charged conspirators in Greg Balotin’s brother Scott’s criminal trial has flipped on him and turned states witness. Guess the only strategy left now is to keep trying to delay the inevitable as long as possible.
 






I’ve known Greg and Scott’s mother many years through our work together at Temple. She always seemed so upbeat around everyone, but I know she was always worried about these two boys. It’s heartbreaking to see how greed can ruin a family. I feel so bad for her and the other siblings. Such a shame
 






UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
JACKSONVILLE DIVISION
UNITED STATES OF AMERICA,​
Plaintiff,
Case No.: 3:19-CR-191-MMH-JBT-1
vs.
SCOTT BALOTIN and
THOMAS JONES,
Defendants.
_________________________________/
CONSENT JOINT MOTION FOR NEW TRIAL
BASED ON NEWLY DISCOVERED EVIDENCE ON BEHALF OF
DEFENDANTS SCOTT BALOTIN AND THOMAS JONES
Defendants, Scott Balotin and Thomas Jones, through counsel and with the
consent of the United States of America, through Roger B. Handberg, United States
Attorney for the Middle District of Florida, respectfully move for a new trial based on
newly discovered evidence. This motion is made pursuant to Rule 33(b)(1), Federal
Rules of Criminal Procedure and, in support hereof, the defendants state:
1. On October 18, 2021, following a four-week jury trial the jury returned a
verdict finding Scott Balotin (“Balotin”) guilty as to the charges in Count One and
Twelve of the Indictment. (Doc. 522). Balotin was acquitted of the remaining charges
against him. Thomas Jones (“Jones”) was convicted of Counts One and Seventeen
and acquitted of the remaining charges against him. (Doc. 524).
2. On September 28, 2023, just three days before sentencing set for the week of
October 2, 2023 and an hour or so before a hearing set by the Court to consider the
Motion of one of Balotin’s counsel for leave to withdraw (Docs. 772 and 773) and the
“Time Sensitive” motion of his remaining counsel to continue the sentencing (Doc.
774), the government provided defense counsel a detailed Brady/Giglio disclosure letter
regarding its trial witness David Stevens. The new, first-time disclosures contained in
the September 28, 2023 letter expand upon and differ in every material way from the
pre-trial Brady/Giglio disclosure made by the government on September 23, 2021, six
days before the trial commenced. The new disclosure is attached hereto as Exhibit
“A”.1 The pre-trial disclosure is attached hereto as Exhibit “B”.
3. The existence and putative significance of the newly discovered evidence
contained in Exhibit “A” were the subject of extensive discussion during the hearing
on September 28, 2023. As a result and without objection from the Government, the
Court continued the sentencings of Balotin and Jones and the remaining defendants
indefinitely (Public Portion of Tr. at pg 23, lines 15-24) and instructed Balotin’s
counsel to devote their energies to investigating and determining next steps in light of
the Stevens disclosures (Id., at pg 30, lines, 23-24).2 The Court set a Status Hearing for
November 1, 2023, (Doc. 788). Just by way of example, one part of the new disclosure
contained in Exhibit “A” is a Report of Interview of Mr. Stevens in which, among
other things, he is quoted as having told the agents as part of an effort to convince them
not to charge him with criminal conduct and to accept his cooperation that “I would
do anything to stay out of jail and remain with my family.” It is beyond cavil that a
jury is entitled to know that a witness would literally “do anything” to stay out of jail
and remain with his family. Committing perjury on behalf of the government is among
the universe of things that qualify as “anything.”
4. Since the hearing, as instructed by the Court, counsel for Balotin have
engaged in a detailed investigation to determine the facts relevant to, and the
significance of, the Stevens’ disclosures. This investigation has included both extensive
follow-up discovery requests made to the Government as well as an ongoing dialog
with government counsel. For its part, the Government has provided substantial
additional discovery material to Balotin’s investigation and is continuing to gather
additional materials responsive to Balotin’s discovery requests.
5. The additional materials regarding Stevens provided by the government to
date have added significantly to the body of newly discovered evidence that establish
a significant failure by the government to timely disclose to defense counsel highly
material evidence bearing directly on the credibility of Mr. Stevens as a prosecution
witness. Because this is a “consent” motion, we will not detail the evidence here. The
details are, of course, available for full disclosure should the Court require same.
6. During the course of our investigation, Balotin’s counsel have discovered
what appear to be additional serious discovery violations. One of these involves
another government witness, Jeremy Bezroukoff . This discovery issue bears directly
on the Court’s reasoning in its ruling as to Bezroukoff in its order denying Balotin’s
Motion for New Trial. (Doc. 698, pp. 76-78) Balotin has propounded additional
discovery requests to the government regarding Mr. Bezroukoff. Again, the substance
of these discovery failures will not be detailed here but are available if required.
7. Both David Stevens and Jeremy Bezroukoff were key witnesses against both
Balotin and Jones at trial. They were referenced by the Government in opening
statements and testimony by them was argued in closings, including in the
Government’s rebuttal closing. Because of the post-trial nature of the disclosures, no
corrective measures were, or even could have been, taken. The newly discovered
evidence bearing directly on the credibility of these key witnesses referenced in this
motion may well have resulted in a different verdict, particularly from a jury which
acquitted some defendants entirely and even partially acquitted Balotin and Jones.
8. On Friday October 13, 2023, counsel for Balotin and for Jones were advised
by AUSAs Anita Cream and Ashley Washington that they had secured permission to
consent to the vacation of the jury’s guilty verdicts and to the granting of a new trial
on those counts by the Court for Balotin and Jones.3
WHEREFORE, the defendants, Scott Balotin and Thomas Jones pray that this
Court enter an order VACATING the jury’s guilty verdicts and GRANTING the
defendants a new trial.​
Date: October 16, 2023.
Respectfully submitted,
Counsel for Scott Balotin
By: /s/Edward R. Shohat
EDWARD R. SHOHAT
Florida Bar No. 152634
/s/ David S. Weinstein
DAVID S. WEINSTEIN
Florida Bar No. 749214
Jones Walker LLP
201 S. Biscayne Blvd., Suite 3000
Miami, Florida 33131
Telephone: (305) 679-5700
Facsimile: (305) 679-5710
Emails: eshohat@joneswalker.com
dweinstein@joneswalker.com
 






NEW TRIAL BASED ON PROSECUTORIAL MISCONDUCT

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
JACKSONVILLE DIVISION
UNITED STATES OF AMERICA
v. Case No. 3:19-cr-191-MMH-JBT
SCOTT BALOTIN
THOMAS JONES
O R D E R
THIS CAUSE is before the Court on the Consent Joint Motion for New
Trial Based on Newly Discovered Evidence on Behalf of Defendants Scott
Balotin and Thomas Jones (Dkt. No. 800; Motion) filed on October 16, 2023. In
the Motion, the United States and Defendants Scott Balotin and Thomas Jones
request that Balotin and Jones be granted a new trial pursuant to Rule 33(b)(1).
See generally Motion. In support, the parties advise the Court that on
September 28, 2023, almost two years after the jury returned verdicts finding
Balotin and Jones guilty of some of the charges brought against them in this
case, the United States disclosed material new evidence of which the
Defendants were previously unaware. See generally id. In light of the
representations in the Motion, and with the agreement of all parties, the Court
determines that the Motion is due to be granted. Accordingly, it is
ORDERED:
1. The Consent Joint Motion for New Trial Based on Newly
Discovered Evidence on Behalf of Defendants Scott Balotin and
Thomas Jones (Dkt. No. 800) is GRANTED.
2. The Jury Verdict (Dkt. No. 522) is set aside and the adjudication of
guilt as to Scott Balotin on Counts One and Twelve of the
Indictment in this case is vacated.
3. The Jury Verdict (Dkt. No. 524) is set aside and the adjudication of
guilt as to Thomas Jones on Counts One and Seventeen of the
Indictment in this case is vacated.
4. At the status conference scheduled for November 1, 2023, the
United States should be prepared to discuss how it intends to
proceed with respect to the remaining charges against Scott Balotin
and Thomas Jones.
DONE AND ORDERED in Jacksonville, Florida this 31st day of
October, 2023.
MARCIA MORALES HOWARD
United States District Judge
 






Anyone know any of the details about the new trial? How does anyone get a new trial on newly discovered evidence? That consent motion seems really shady where the witness said he “would do anything to stay out of jail”. Has to be more here.
 






anonymous said:
Anyone know any of the details about the new trial? How does anyone get a new trial on newly discovered evidence? That consent motion seems really shady where the witness said he “would do anything to stay out of jail”. Has to be more here.
Click to expand...
Scott was able to get a new trial on a last minute technicality before sentencing. All other defendants have plead guilty and will testify against him. He is without a doubt going to prison.

Sad thing is his brother Greg Balotin and Bill Scrogins were doing the same thing for years. They were just able to barter a deal. I don’t even think Samantha Balotin was ever held liable for her participation in steering prescriptions back to her husband’s pharmacy.

This whole operation was one big scheme.
 






I heard the trial is going to be late next year. The prosecutor from the first trial Julie Hackenberry retired with dementia. The guy who said he would do anything was a confidential informant who was paid to testify at the last trial. Sounds like more than a technicality. Sounds like one big cover up. I heard Jose Baez is going to take over the case. Anyone know anymore details?
 






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