Healthcare News & Insights

Pharmacist gets 4 years in prison for fraud

Turns out identity theft and fraud were the wrong cure for this pharmacist’s financial troubles.

Pamela Arrey, a Baltimore pharmacist, was recently sentenced to four years in jail after she pleaded guilty to health care fraud, identity theft and conspiracy to misbrand drugs. She’ll spend another three years on “supervised release” after serving her time. In addition, Arrey has to forfeit her home and pay over $500k in restitution. The home’s mortgage was paid largely through the ill-gotten funds.

Arrey owned and operated two pharmacies in Baltimore. For nearly five and a half years, Arrey claimed reimbursement from health care benefits programs for refills of prescriptions for which no drugs were ever dispensed. She targeted refills that had been authorized by doctors, but never picked up by patients, and used patient’s personal information to make the claims.

Areey also illegally relabeled and sold prescription drugs she had purchased from an unlicensed supplier. The mislabeled medications included vital prescriptions for treating diabetes and anti-seizure medications for epileptic patients.

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