Mangum pharmacy owner sentenced in health care fraud case

User: Oklahoma Attorney General's Office

Published: 5/21/20, 7:22 PM

(OKLAHOMA CITY, Okla.) A federal judge has sentenced Jeff Terry to over three years in prison and ordered the former Mangum pharmacy owner to pay nearly $1.1 million he previously agreed to pay in restitution when he pled guilty to a false claims scheme in 2019.

The initial investigation that led to Terry’s indictment found he falsified prescription information within his pharmacy’s software program, then submitted those false claims to SoonerCare and Medicare Part D for drugs that were never prescribed or dispensed to patients.

“Many of our state’s most vulnerable citizens rely on the Medicaid and Medicare systems for healthcare coverage,” Attorney General Mike Hunter said. “To defraud it, as Jeff Terry did, is disgraceful. I appreciate Judge Scott Palk for sending him to prison and holding him accountable. I am also thankful for our strong partnership with U.S. Attorney for the Western District of Oklahoma Tim Downing, whose team was instrumental in bringing Terry to justice. We will continue to combine our resources to ensure taxpayer money and Oklahomans are protected.”

The investigation was led by the attorney general’s Medicaid Fraud Control Unit and the Department of Health and Human Services – Office of Inspector General, Audit Services. The case, and resulting plea agreement, were handled by the Attorney General’s Office and the U.S. Attorney’s Office for the Western District of Oklahoma.

“The protection of the integrity of federal and state health care benefit programs is of paramount importance” said U.S. Attorney Downing. “Oklahomans and citizens across the United States rely on Medicare and Medicaid services to maintain a healthy quality of life. The pilfering by anyone from these programs will not be tolerated. We appreciate very much the opportunity to work with General Hunter’s capable team on this case.”

In addition to prison time and restitution, Judge Palk also ordered Terry to complete 100 hours of community service and three years of supervised release. In announcing the sentence, Judge Palk cited the nature and seriousness of the offense and the need to deter others from engaging in similar conduct.

The Oklahoma Medicaid Fraud Control Unit receives 75% of its funding from the U.S. Department of Health and Human Services under a grant award. The remaining 25% is funded through recoveries. For further information, click here: https://bit.ly/2zRQJFT.

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