Mangum Pharmacist Gets More Than Three Years for Fraud

He Was Ordered to Pay Over $1 Million to Medicare and Medicaid

OKLAHOMA CITY – Jeffrey Scott Terry, 38, of Mangum, Oklahoma, was sentenced today to 37 months in federal prison for his role in a health care fraud scheme, announced Oklahoma Attorney General Mike Hunter and U.S. Attorney Timothy J. Downing.

“Many of our state’s most vulnerable citizens rely on the Medicaid and Medicare systems for healthcare coverage,” Attorney General Mike Hunter said. “To defraud it, as Jeff Terry did, is disgraceful. I appreciate U.S. District Judge Scott L. Palk for sending him to prison and holding him accountable. I am also thankful for our strong partnership with U.S. Attorney for the Western District of Oklahoma Tim Downing, whose team was instrumental in bringing Terry to justice. We will continue to combine our resources to ensure taxpayer money and Oklahomans are protected.”

“The protection of the integrity of federal and state health care benefit programs is of paramount importance” said U.S. Attorney Timothy J. Downing.  “Oklahomans and citizens across the United States rely on Medicare and Medicaid services to maintain a healthy quality of life.  The pilfering by anyone from these programs will not be tolerated.  We appreciate very much the opportunity to work with General Hunter’s capable team on this case.”

According to an indictment filed in March 2019, Terry was a licensed pharmacist who began operating Bratton Drug at 109 S. Oklahoma in Mangum in August 2015.  Both the Oklahoma Health Care Authority—which administers Medicaid under the name SoonerCare—and Medicare reimbursed Bratton Drug for prescription drugs that it dispensed.  The indictment alleged that from August 2015 to September 2018, Terry submitted false claims to SoonerCare and Medicare Part D for drugs that had not actually been prescribed or dispensed to patients.  Separately, the United States filed a civil action pursuant to the Anti-Fraud Injunction Statute and obtained an injunction to prohibit Terry from dissipating or alienating assets he accumulated as a result of the false claims. On August 12, 2019, Terry entered a guilty plea before Judge Palk to one count relating to Medicaid and one count relating to Medicare.

At a sentencing hearing today, Judge Palk sentenced Mr. Terry to 37 months in prison, along with three years of supervised released.  Judge Palk also ordered Terry to complete 100 hours of community service.  In announcing the sentence, Judge Palk cited to the nature and seriousness of the offense and the need to deter others from engaging in similar conduct.  Terry was ordered to pay restitution of $328,836.18 to SoonerCare and $753,334.13 to Medicare, for a total of $1,082,170.31.  Judge Palk also ordered Terry to forfeit real property in Greer County and a 2016 Dodge Challenger.

These charges were the result of an investigation by the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services—Office of Inspector General, Office of Audit Services.  Assistant Oklahoma Attorney General Lory Dewey, who also serves as a Special Assistant U.S. Attorney, and Assistant U.S. Attorney Amanda Maxfield Green prosecuted the case.  Assistant U.S. Attorneys Amanda Johnson and Ron Gallegos of the U.S. Attorney’s Office’s Civil Division handled the civil injunctive component of the case.

Reference is made to public filings for further information.