Steven M. Butcher, 39, owner of MedMax LLC, which provided marketing services for compounded medications, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal Court for conspiracy to commit healthcare fraud and violate the Anti-Kickback Statute.
Butcher used his company, MedMax, to convince people to obtain unneeded compound medications and then bill the costs to various private and federal healthcare insurance plans. MedMax was a marketing company for compound medications. Butcher also paid several kickbacks from 2014 to 2015 for many individuals to fraudulently bill a health care benefit program that primarily serviced military families, called TRICARE, for unnecessary compound medications.
Compounded pharmacies prepare personalized medications based on specific prescriptions that include instructions for exact strength and dosage.