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CEO of Louisiana compounding pharmacy pleads guilty in NJ health care fraud scheme
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CEO of Louisiana compounding pharmacy pleads guilty in NJ health care fraud scheme

Federal Court in Camden

Mitchell H. Cohen Building and U.S. Courthouse in Camden

CAMDEN — The chief executive officer of a Louisiana pharmacy used by numerous individuals to defraud New Jersey health benefits programs and other insurers out of more than $50 million has pleaded guilty to her role in the scheme.

Hayley Taff, 37, of Louisiana-based Central Rexall Drugs, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to one count of conspiracy to commit health care fraud.

The latest indictment ties together several of the many threads in the case, which first came to light in summer 2017 when Margate received a subpoena for its employees’ health benefit information. Since then, more than 30 people have been charged in the scheme.

Prosecutors have said the scheme centers on the billing of the state’s public employee health benefit plans for medically unnecessary compounded drugs, with payouts from prescription reimbursements going to line the pockets of all participants.

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The company designed compounded medications and manipulated the ingredients to determine the highest reimbursement rate, court documents show. When pharmacy benefits administrators stopped covering one combination, the company would compound different medications based solely on insurance reimbursement.

According to court documents, Taff admitted during the scheme the company stopped being concerned about the health impacts of their compounded medications. The company devoted itself solely to making money, the court documents show.

Taff’s conspirators designed compounded medications and manipulated the ingredients in the medications to obtain high insurance reimbursements rather than serve the medical needs of patients, according to court documents.

Taff faces a maximum of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of the plea agreement, Taff must pay restitution of $51,670,251 and forfeiture of $1,553,616. Sentencing for is scheduled for Dec. 1.

Contact: 609-272-7046

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