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Case Number: 4:20-cr-00223-BSM
Judge: Brian S. Miller
Court: United States District Court for the Eastern District of Arkansas (Pulaski County)
Plaintiff's Attorney: United States Attorney’s Office
Description: Little Rock, AR: False statement criminal defense lawyer represented Defendant, Steve Hill, age 57, who made misleading agents investigating his promotion of expensive compounded prescription drugs.
A veteran of the medical sales industry based in Memphis, in 2014 Hill began to promote compounded prescription drugs covered by TRICARE. His compensation equaled a fixed percentage of sales generated. When a healthcare provider to whom Hill marketed the drugs went on to prescribe them, Hill earned a share of whatever the insurer reimbursed for the drugs.
Among the healthcare providers Hill solicited was Doctor 1. Unbeknownst to TRICARE, Hill shared his commission on Doctor 1’s prescriptions with Doctor 1’s wife, Spouse 1. Specifically, of the more than $500,000 in commission he earned from Doctor 1’s prescriptions, Hill paid $147,325.25 to Spouse 1 and kept the remaining $345,727.15 for himself.
Around 2016, federal agents began to investigate Hill’s promotion of compounded drugs as well as his financial relationship with Spouse 1. In August 2017, a Special Agent of the FBI travelled to Hill’s Tennessee home to speak with him directly. During that interview, Hill denied having paid Spouse 1, which he knew to be false.
Under the terms of his guilty plea, Hill agreed to forfeit $345,727.15 in illicit proceeds. He will be sentenced at a later date. Making a false statement to the FBI is punishable by up to five years’ imprisonment.
Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, James A. Dawson, Special Agent in Charge of the FBI Little Rock Field Office, and Miranda Bennett, Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services announced the guilty plea.
The investigation was conducted by the FBI and HHS-OIG. The case is being prosecuted by Assistant United States Attorney Alexander D. Morgan.
18:1001(A)(2) Making a False Statement
(a) Except as otherwise provided in this section, whoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully—
(1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact;
(2) makes any materially false, fictitious, or fraudulent statement or representation; or
(3) makes or uses any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry;
shall be fined under this title, imprisoned not more than 5 years or, if the offense involves international or domestic terrorism (as defined in section 2331), imprisoned not more than 8 years, or both. If the matter relates to an offense under chapter 109A, 109B, 110, or 117, or section 1591, then the term of imprisonment imposed under this section shall be not more than 8 years.
(b) Subsection (a) does not apply to a party to a judicial proceeding, or that party's counsel, for statements, representations, writings or documents submitted by such party or counsel to a judge or magistrate in that proceeding.
(c) With respect to any matter within the jurisdiction of the legislative branch, subsection (a) shall apply only to—
(1) administrative matters, including a claim for payment, a matter related to the procurement of property or services, personnel or employment practices, or support services, or a document required by law, rule, or regulation to be submitted to the Congress or any office or officer within the legislative branch; or
(2) any investigation or review, conducted pursuant to the authority of any committee, subcommittee, commission or office of the Congress, consistent with applicable rules of the House or Senate.
Outcome: Defendant pleaded guilty.