Attorney General Michelle Henry has announced charges against nine individuals in connection with a $20 million Medicaid and Medicare fraud scheme. The alleged fraudulent activities took place at Broad Street Family Pharmacy, located in a South Philadelphia neighborhood, from 2016 to 2021.
Elizabeth Thompson, the registered owner of the pharmacy, along with her husband Peter Dello Buono and pharmacist Frank Bengermino, are accused of orchestrating the scheme. They allegedly submitted false claims for expensive medications to federal benefits programs while dispensing few prescriptions. Instead, they reportedly offered cash incentives to customers who brought their prescriptions to the pharmacy.
The scheme involved paying kickbacks for pills sold back to the pharmacy by consumers in exchange for cash or other medications. Fraudulent claims were primarily made for Latuda, an antipsychotic medication, and high-reimbursement HIV drugs.
Attorney General Henry stated: “The owner and operator of this pharmacy were essentially pretending to fill prescriptions for expensive medications while defrauding the Medicaid and Medicare programs of millions of dollars with a sophisticated scheme involving nearly a dozen co-conspirators.” She added that these alleged crimes diverted funds meant for Pennsylvanians in need into the defendants' pockets.
The charges followed an investigation by the Pennsylvania Office of Attorney General's Medicaid Fraud Control Section and the U.S. Department of Health and Human Services Office of Inspector General. The Fiftieth Statewide Investigating Grand Jury issued a presentment leading to these charges.
Those charged include Peter Dello Buono, Elizabeth Thompson, Frank Bengermino, Berry Davis, Brian O’Hara, Michael McCue—all from Philadelphia—Christian Bengermino from Folsom; Evan Gusz from Glenside; and Angelo Amorosi from Philadelphia. They face multiple charges including Medicaid fraud, dealing in unlawful proceeds, theft by deception, conspiracy, among others. Some are also charged under drug-related acts.
Broad Street Family Pharmacy was licensed to serve Medicaid and Medicare clients. Although owned by Thompson, operations were managed by Dello Buono despite his suspended pharmacist license prohibiting him from participating in benefit programs. Frank Bengermino held a valid license as managing pharmacist during this period.
Investigators believe that approximately 86 percent of Broad Street Family Pharmacy’s billings over five years pertained to Latuda and HIV medications billed under Medicaid despite minimal actual distribution at the location which closed following an executed search warrant in autumn 2021.
Assistant Chief Deputy Attorney General Mark Levenberg is prosecuting these cases where defendants remain presumed innocent until proven guilty.
Funding details indicate that Pennsylvania's Medicaid Fraud Control Unit receives significant financial support through grants covering both federal fiscal year contributions totaling over $12 million alongside state funding allocations exceeding $4 million annually.