Fayetteville man pleads guilty in $3.1 million Medicare prescription drug scheme

Buffalo, N.Y. — A Fayetteville man pleaded guilty to federal charges Wednesday for his role in a $3.1 million health care kickback scheme that defrauded Medicare by paying for prescriptions patients didn’t need, federal prosecutors said.

Timothy Klein, 49, pleaded guilty to conspiracy to pay and receive health care kickbacks, a charge that carries a maximum penalty of five years in prison and a $250,000 fine, according to a news release from the U.S. Attorney’s Office for the Western District of New York.

Klein conspired with others between February 2017 and September 2018 to submit fraudulent prescription drug claims to Medicare and Medicare Part D plan sponsors, prosecutors said. Klein operated JRS Group LLC and arranged for unnecessary prescriptions obtained through kickbacks and bribes, then taking the proceeds for personal use, they said…

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