TAMPA, Fla. – Mihir Taneja has agreed to pay the United States $2 million to resolve allegations that he violated the False Claims Act by participating in a kickback scheme that tainted claims for compounded medications reimbursed by TRICARE, the healthcare program for military members and their families.
The settlement, announced by U.S. Attorney Roger B. Handberg, underscores the federal government’s ongoing efforts to combat fraud in the healthcare system.
The settlement resolves allegations that Taneja conspired with Larry Smith, the owner of Z Stat Medical, LLC, which operated as Oldsmar Pharmacy, to enter into an illegal kickback arrangement with Centurion Compounding, Inc., a marketing company.
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According to court documents, Taneja and Smith negotiated a deal in which Centurion received a percentage of profits from TRICARE claims it referred to Oldsmar Pharmacy.
From November 2014 to February 2015, Oldsmar Pharmacy submitted thousands of claims to TRICARE for compounded pain and scar creams that were tainted by these kickbacks. These claims, which were fraudulent under the False Claims Act and the Anti-Kickback Statute, resulted in millions of dollars in improper reimbursements from TRICARE.
Taneja’s case is part of a larger pattern of fraud involving compounded medications and TRICARE. Between 2004 and 2015, TRICARE’s costs for compounded drugs skyrocketed from 5 million to a staggering 1.75 billion. This dramatic increase was fueled by widespread abuse and fraudulent schemes, prompting federal authorities to crack down on illegal practices in the compounding pharmacy industry.
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To date, the U.S. Attorney’s Office for the Middle District of Florida has recovered over $60 million in cases involving fraudulent compounding pharmacy claims.
U.S. Attorney Roger B. Handberg emphasized the importance of holding individuals accountable for undermining the integrity of the healthcare system. “Kickback arrangements threaten the quality of care patients receive and undermine the integrity of our healthcare system,” Handberg said. “My office will aggressively investigate and hold accountable those who seek to profit from such illegal arrangements.”
Special Agent-in-Charge Jason J. Sargenski of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), echoed this sentiment.
“The Defense Criminal Investigative Service is committed to safeguarding the integrity of the TRICARE program, the healthcare system for military members and their families,” Sargenski said. “I applaud the hard work of our agents and the United States Attorney’s Offices that led to today’s settlement.”
The lawsuit against Taneja was filed under the False Claims Act, which imposes liability on individuals who submit or cause the submission of false or fraudulent claims for payment. The Anti-Kickback Statute further prohibits offering or receiving remuneration in exchange for referrals of services paid for by federal healthcare programs.
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