AP NEWS

10 from Alabama, Florida charged in alleged drug scheme

May 6, 2019

BIRMINGHAM, Ala. (AP) — Ten people from Alabama and Florida are charged as part of a ring that federal authorities say fraudulently billed companies for more than $200 million in drugs.

The charges announced Monday mean nearly 30 people have been charged in an alleged scheme involving Northside Pharmacy, located in rural Haleyville, Alabama.

Authorities say the company did business as Global Compounding Pharmacy. It shipped drugs from Alabama and operated a call center in Clearwater, Florida.

A statement from federal prosecutors in Birmingham says the operation billed for medically unnecessary drugs and overcharged for prescriptions. Authorities say one plan administrator paid more than $29,000 for a single tube of wound cream.

Eight of the people named in new indictments are from Florida, and two live in Alabama.

Eighteen people have pleaded guilty.