Feds: 4 Hudson County pharmacies fined $4.325M for violating False Claims Act

Four pharmacies located in Jersey City, Bayonne, Union City, and West New York, respectively, have agreed to pay $4,325,000 to resolve allegations that they violated the False Claims Act, U.S. Attorney’s Office Special Counsel Philip Lamparello announced.

These pharmacies knowingly billing federal health care programs for medications they never dispensed, according to Lamparello.

Per the settlement agreements, inventory records showed that the aforementioned pharmacies didn’t purchase enough medications from wholesalers to fill the prescriptions billed to the federal health care programs.

West New York’s Pan American Inc. agreed to pay $3,100,000 to resolve allegations that from January 2nd, 2015 through January 25th, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs Pan American never dispensed to beneficiaries…

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