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National Insurance Crime Bureau

Former Owners of Hillsborough Compounding Pharmacy Pay $1,082,991.94 to Resolve False Claims Act Allegations

Department of Justice

U.S. Attorney’s Office

Middle District of North Carolina

FOR IMMEDIATE RELEASE

GREENSBORO, N.C. - The owners of a now-closed compounding pharmacy have paid $1,082,991.94 to resolve allegations that they violated the False Claims Act by submitting false claims for payment to the TRICARE program between September 2014 and May 2015.

David and Lois Tsui of Chapel Hill, North Carolina formerly owned Wellcare Compounding, in Hillsborough, North Carolina. David Tsui was previously convicted of health care fraud, and in 2009 was excluded from participation in federal health care programs, including TRICARE. The United States contended that Wellcare intentionally concealed David Tsui’s involvement in and ownership of the pharmacy, including by falsely representing to TRICARE that Lois Tsui was the pharmacy owner. The United States also asserted that Wellcare made improper payments to physicians and “marketers” in exchange for prescriptions or referrals for prescriptions, in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b). In addition, Wellcare encouraged medically unnecessary prescriptions consisting of high-margin ingredients to maximize the pharmacy’s reimbursement. The United States contended that through these actions, the Tsuis and Wellcare knowingly caused false claims to be presented to the TRICARE program.

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