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August 05, 2022

Houston Pharmacy Owner and Accountant Indicted Again for Large Health Care Fraud Scheme Targeting the Elderly

On August 2, the DOJ announced that Mohamed Mokbel and Fathy Elsafty had been indicted again in connection to a $150 million health care fraud, mail fraud, and money laundering scheme targeting the elderly. The 18-count superseding indictment alleges that from 2013 to January 2022, Mokbel and Elsafty used a sophisticated marketing scheme to target people 55 and older.  Mokbel, CEO of 4M Pharmaceuticals, Inc., controlled over a dozen Houston-area pharmacies and allegedly perpetrated fraud related to certain prescriptions. Elsafty, Mokbel’s accountant, allegedly concealed Mokbel’s involvement in the pharmacies by falsifying corporate filings.  The indictment further alleges that Mokbel and Elsafty money-laundered the proceeds. If convicted, Mokbel and Elsafty face up to 20 years in prison for the conspiracy, 10 years for the health care fraud, 10 years for the money laundering, and 10 years for the mail fraud targeting the elderly.

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