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Connecticut pharmacy fined $39M for kickback scheme with retired state workers

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Sunday, December 22, 2024

Connecticut pharmacy fined $39M for kickback scheme with retired state workers

State AG
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Attorney General William Tong | Official Website

Attorney General William Tong has announced a significant legal judgment against Assured Rx, LLC, a Florida-based pharmacy. The Hartford Superior Court found the company liable for $39 million in treble damages and civil penalties under the Connecticut False Claims Act. This decision follows allegations of a kickback scheme involving illegal payments to retired state employees for expensive compound drug prescriptions.

The case, initiated in 2018, accused Assured Rx of collaborating with Nicholas Maulucci, a retired Department of Correction employee, and his ex-wife Lisette Martinez to recruit and pay retired state employees. These employees were allegedly incentivized to obtain costly compound drug prescriptions covered by the Connecticut State Employee and Retiree Pharmacy Benefit Plan. Nitesh Patel, owner of Assured Rx, was named individually in an amended complaint but was not found personally liable.

Judge John B. Farley presided over the trial in January 2024. The court reviewed extensive evidence including 180 exhibits and testimony from multiple witnesses such as Patel, Maulucci, Martinez, and Christopher M. Murray. It was revealed that at least $2.6 million in kickbacks were paid to plan beneficiaries who arranged for their doctors to prescribe these drugs.

The state's legal team demonstrated that Assured Rx violated anti-kickback statutes through Boots Rx Inc., another entity owned by Patel. Payments were made to Maulucci and Martinez via their company NLM LLC for arranging prescriptions and recruiting other plan members.

"Assured Rx’s kickback scheme was purposely calculated to and did extract millions of dollars in public funds," stated Judge Farley.

Attorney General Tong remarked on the outcome: "This is a major victory for Connecticut taxpayers." He emphasized that the judgment sends a strong message against public fund abuse.

Comptroller Sean Scanlon also praised the ruling: "Connecticut’s taxpayers and state employees deserve a healthcare system that is transparent and fair."

The case involved contributions from various legal professionals within the Attorney General's office alongside support from the Office of the State Comptroller.

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