Current and Former Owners of Center City Philadelphia Pharmacy Agree to Pay Over $4.6 Million to Resolve Civil Investigations of Improper Medicare and Medicaid Billing

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Jai Shri Krishna LLC, the current owner of Pennmark Pharmacy in Philadelphia, and Pennmark Pharmacy Inc., the former owner of the pharmacy, have separately agreed to pay, in total, over $4.6 million to resolve the False Claims Act liability of Jai Shri Krishna and its pharmacist and the unjust enrichment liability of Pennmark Pharmacy Inc.

Jai Shri Krishna LLC has operated Pennmark Pharmacy on South Street in southwestern Center City since January 2018. During that time, Antim Patel, a member of the LLC, has been Pennmark Pharmacy’s principal pharmacist. Jai Shri Krishna LLC and Mr. Patel will jointly pay $3,955,173.79 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare and Medicaid for prescription medications that were not actually dispensed during the period from January 12, 2018, through September 30, 2020. These medications include but are not limited to Latuda, Sprycel, Metformin Hydrochloride, Truvada, Advair Diskus, Genvoya, Triumeq, Tremfya, Tivicay, Breo Ellipta, Anoro Ellipta, Spiriva Respimat, Januvia, Vanos 0.1% cream, Isentress, and Biktarvy. In some cases, such as for Metformin Hydrochloride and Vanos 0.1% cream, the government alleges that Jai Shri Krishna LLC billed Medicare for high-cost formulations of the medications while dispensing lower-cost formulations to beneficiaries.

As part of their resolution with the United States, Jai Shri Krishna LLC and Antim Patel have entered into an integrity agreement with the Department of Health and Human Services, Office of the Inspector General. The integrity agreement requires them to undertake substantial compliance obligations and to contract with an Independent Review Organization that will conduct third-party audits of their Medicare claims and drug inventory.

Pennmark Pharmacy Inc. has separately agreed to pay $700,530 to resolve allegations that it and its principal, Engin Celik, were unjustly enriched as a result of billing Medicare and Medicaid, during the period from June 17, 2015, through January 11, 2018, for prescription medications that were not actually dispensed. These medications include but are not limited to Symbicort, Aripiprazole, Ventolin HFA, Isentress, Sensipar, Advair Diskus, Prezista, Renvela, and Flovent HFA.

“Pharmacies and pharmacists are in a position to serve their communities as vital components of our medical system; they have a responsibility not to abuse their positions for profit,” said U.S. Attorney Romero. “Taxpayers expect that their dollars will be spent on medications needed by Medicare and Medicaid beneficiaries. The U.S. Attorney’s Office works every day to ensure that taxpayer dollars are not wasted on fraud and abuse.”

“Pharmacies are responsible for all claims they submit to Medicare and Medicaid,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”

The claims resolved by the settlements are allegations only, and there has been no determination of liability.

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorneys Elizabeth L. Coyne and Rebecca S. Melley and Auditor George Niedzwicki.