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Date: 07-21-2021
Case Style:
Case Number: 2:20-cr-00016-KS-MTP
Judge: Keith Starrett
Court: United States District Court for the Southern District of Mississippi (Hinds County)
Plaintiff's Attorney: United States Attorney’s Office
Defendant's Attorney:
Description: Jackson, Mississippi criminal defense lawyer represented Defendant charged with his role in a multimillion-dollar scheme to defraud TRICARE and private insurance companies by paying kickbacks to distributors for the referral of medically unnecessary compounded prescription medications that were ultimately dispensed by his pharmacies.
David “Jason” Rutland, 42, of Bolton, a pharmacist and co-owner of various compounding pharmacies, admitted that he participated in a scheme to defraud TRICARE and other health care benefit programs by distributing medically unnecessary compounded medications by, among other things: adjusting prescription formulas to ensure the highest reimbursement without regard to efficacy; soliciting recruiters to procure prescriptions for high-margin compounded medications and paying those recruiters commissions based on the percentage of reimbursements paid by pharmacy benefit managers and health care benefit programs, including commissions on claims reimbursed by TRICARE; and routinely and systematically waiving and/or reducing copayments to be paid by beneficiaries and members, including utilizing a purported copayment assistance program to falsely make it appear as if Rutland’s pharmacy and its affiliate compounding pharmacies had been collecting copayments.
Rutland pleaded guilty to conspiracy to defraud the United States and solicit, receive, offer and pay illegal kickbacks, and faces a maximum penalty of five years in prison. Sentencing has been scheduled for Nov. 30. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Rutland must also pay restitution and forfeit all assets traced to the ill-gotten gains.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi; Special Agent in Charge Michelle Sutphin of the FBI’s Jackson Field Office and Special Agent in Charge Cynthia A. Bruce of the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS) Southeast Field Office made the announcement.
The FBI and DCIS are investigating the case.
Trial Attorneys Emily Cohen and Alejandra Arias of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Kathlyn Van Buskirk of the Southern District of Mississippi are prosecuting the case with assistance from Sara Porter and Dustin Davis from the Criminal Division’s Fraud Section.
ATTEMPT AND CONSPIRACY
(1)
CONSPIRACY
(2)
PAYMENT TO NON-LICENSED PHYSICIAN
(3-10)
MONEY LAUNDERING
(11)
MONEY LAUNDERING
(13-14)
ENGAGING IN MONETARY TRANSACTIONS IN PROPERTY DERIVED FROM SPECIFIED UNLAWFUL ACTIVITY
(15)
Outcome: 07/20/2021 88 NOTICE OF ASSIGNMENT (PROBATION) Officer Amie Battle as to David Jason Rutland. (LDR) (Entered: 07/20/2021)
07/20/2021 Minute Entry for proceedings held before District Judge Keith Starrett: Change of Plea Hearing as to David Jason Rutland held on 7/20/2021, Plea entered by David Jason Rutland (2) Guilty Count 2. Plea Agreement and Plea Supplement submitted and made a part of the record. Sentencing is set for November 30, 2021 at 10:00 a.m. Defendant on bond and to remain to await sentencing. Court Reporter Fred Jeske, Telephone Number : 601-255-6432. (dtj) (Entered: 07/20/2021)
07/20/2021 Set Hearings as to David Jason Rutland: Sentencing set for 11/30/2021, 10:00 AM in Courtroom 1 (Hattiesburg) Starrett before District Judge Keith Starrett (dtj) (Entered: 07/20/2021)
07/20/2021 89 PLEA AGREEMENT as to David Jason Rutland (dtj) (Entered: 07/20/2021)
Plaintiff's Experts:
Defendant's Experts:
Comments: