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June 24, 2021

Seven Charged in $110 Million Compound Drug Scheme

A South Texas federal grand jury returned a 15-count indictment against seven defendants, including the owner of Pharr Family Pharmacy (PFP) and the physician owner of the Center for Pain Management. The indictment includes charges of conspiracy to commit health care fraud, health care fraud, conspiracy to pay and receive illegal kickbacks and conspiracy to commit money laundering. From May 2014 to September 2016, PFP allegedly billed various federal health care programs more than $110 million, including claims that were false, fraudulent and the result of illegal kickbacks. The indictment alleges that Mohammad Chowdhury, a marketer paid kickbacks to Dr. Tajul Shams Chowdhury, his father, for referring prescriptions to PFP, including prescriptions for high-reimbursing compound drugs that were not medically necessary.