Pharmacy owner pleads guilty to fraud; will repay more than $1 million

OKLAHOMA CITY – Attorney General Mike Hunter and U.S. Attorney for the Western District of Oklahoma Tim Downing announced today that a Mangum pharmacy owner has pleaded guilty to two counts of healthcare fraud after orchestrating a false claims scheme that bilked the Medicare and Medicaid systems for more than $1 million.

A federal grand jury indicted Jeffrey Terry, 37, in March, after an investigation found he submitted false claims through his pharmacy, Bratton Drug, to SoonerCare and Medicare Part D for drugs that were never prescribed or dispensed to patients.

Terry will pay restitution amounts totaling over $338,000 to the Medicaid program and over $753,000 to Medicare. As part of the plea, he will forfeit numerous pieces of property and possessions to begin paying the restitution.

“Medicaid and Medicare fraud hurts the most vulnerable Oklahomans, who rely on these essential services,” Attorney General Hunter said. “It also costs taxpayers millions per year. That is why we must never relent in our efforts to stop these types of crimes. Thanks to partners like U.S. Attorney Downing and his team, we will continue to safeguard the state and federal healthcare systems, hold criminals accountable and return taxpayer money that will be used to help those who need it most.”

The investigation was led by the attorney general’s Medicaid Fraud Control Unit and the Department of Health and Human Services – Office of Inspector General, Audit Services. The case, and resulting plea agreement, were handled by the Attorney General’s Office and the U.S. Attorney’s Office for the Western District of Oklahoma.

A judge will determine Terry’s sentence later this year where he could receive fines and/or prison time.