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Newly Updated: Pharmacist charged in fraud case

Friday, March 4, 2011

United States Attorney Joseph H. Hogsett (front) announced an arrest in the "single largest health care fraud and prosecution in the Terre Haute district to date" Friday. Pictured behind Hogsett were members of the various department members involved in the investigation, including (far left) FBI Assistant Special Agent in Charge Thomas Gancarz, Deputy Attorney General, Director of Medicaid Fraud Control Unit Allen K. Pope, Assistant U.S. Attorney Bradley P. Shepard, U.S. Dept. Health and Human Services Assistant Special Agent in Charge Mario Pinto and IRS Assistant Special Agent in Charge Donna Turner. Ivy Jacobs Photo. [Order this photo]
TERRE HAUTE -- A Brazil man has been charged with allegations in the largest health care fraud and money-laundering scheme investigated in the history of the Department of Justice's division of Southern District of Indiana.

United States Attorney Joseph H. Hogsett announced Friday pharmacist and controlling member of the Terre Haute Prescription Shop (THPS), John D. Love, Brazil, was charged with one count of health care fraud and two counts of money laundering.

"As U.S. District Attorney, I've come to Terre Haute today to announce the largest case of health care fraud and money laundering discovered in this district to date," Hogsett said during a press conference. "I want to make it loud and clear, that when individuals, who through their own greed, take advantage of the health care system for their own greed, take benefits intended to serve the neediest of Indiana's citizens, it will not be tolerated. Suspects will be investigated and prosecuted to the fullest extent of the law."

According to officials involved in the investigation, a tip to authorities prompted the investigation.

"An outside agency performing an audit with patients tipped officials off," Assistant U.S. Attorney Bradley P. Shepard, who will be prosecuting the case for the government, said. "Love is the sole person being charged in this matter. There is no evidence against any others."

The tip spawned a joint investigation involving Health and Human Services, Office of Inspector General (HHS), The Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and Indiana Attorney General Greg Zoeller's Medicaid Fraud Enforcement Unit (MFCU).

According to information provided during the press conference, officials allege Love submitted claims to the Indiana Medicaid Program (IMP) for prescriptions that were never given to patients from Jan. 1, 2006, through September 2010.

Using his access and knowledge of the THPS computer billing system, Love allegedly inputted false prescription claims to the IMP. But, as soon as the billing system submitted the prescription, Love would log in again to void the claim before any other employee of the THPS could notice a record for a prescription that would never be filled or dispensed.

United States Attorney Joseph H. Hogsett (front) announced "single largest health care fraud and prosecution in the Terre Haute district to date." Assistant U.S. Attorney Bradley P. Shepard, who will be prosecuting the case against Brazil resident John Love, is pictured in back. [Order this photo]
An example of the scheme alleges Love billed IMP for 6,855.4 units of various prescription drugs, while actually ordering only 156 units of the same drugs.

As a result of Love's fraudulent acts, officials allege IMP paid the THPS $3,575,699.73 for prescription medications never provided to patients.

Officials allege these funds were deposited into the main business account of THPS. Love, in his authority as business owner, used at least $3 million of the fraudulent proceeds to purchase, in whole or in part, four parcels of real estate, 15 vehicles, a destination wedding for one of his children in Destin, Fla., and numerous other personal expenses.

"For a pharmacist to bill the taxpayers millions of dollars for prescription drugs that doctors never ordered and patients never received is a brazen abuse of the Medicaid system," Zoeller stated in a press release. "The Attorney General's Medicaid Fraud Control Unit collaborates closely with our federal colleagues to unravel such schemes so that those who try to game the system will be held accountable."

As part of the investigation, federal authorities have seized property Love allegedly purchased, including five Harley Davidson motorcycles, a Corvette and a Mustang, four sport utility vehicles, two pickup trucks, one four-wheeler RV and trailer, and funds from multiple bank accounts. The government will be seeking forfeiture of these and other assets.

The money laundering charges concern the purchase of one Harley Davidson motorcycle and the destination wedding.

Shepard, who is prosecuting the case for the government, added Love faces a maximum of 10 years in prison and a $250,000 fine if convicted of the allegations.

An initial hearing will be scheduled for an initial appearance and arraignment in Terre Haute before a U.S. Magistrate Judge William Lawrence.

Shepard confirmed a summons has been issued, notifying Love to surrender himself to authorities and appear in court at the appointed time.

When asked about the future of the THPS, officials confirmed that no other individuals were apparently involved with Love's actions and that the business license would be a matter for the state.

"As far as we know, the business partner is currently running the THPS now with no problems," Shepard said. "Love is the sole person being charged."

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Really...really???? A political commercial?? Come on.

-- Posted by Mutchie on Fri, Mar 4, 2011, at 2:52 PM

We're not talking about Obama...we are talking about a man, from Clay County, a Healthcare Professional, who took $3.5 million dollars for his own selfish reasons! HIS actions have absolutely NOTHING to do with Obama's stupid healthcare regime!

-- Posted by clgruener on Fri, Mar 4, 2011, at 4:09 PM

He spent 3 million since 2006 and his family or Lynn Hostetler didnt know it.

-- Posted by Mrs. Positive on Fri, Mar 4, 2011, at 5:36 PM

I thought Lynn Hostetler did the ledger for the company. If 3.5 million didnt catch his eye, maybe he does the book looking the other way.

-- Posted by smallguysmalltown on Fri, Mar 4, 2011, at 7:44 PM

A little research shows some pharmacies mark pills up as high as 3,000 or higher, that's THREE THOUSAND PERCENT. They should ALL go to jail.


-- Posted by Dagnabbit on Fri, Mar 4, 2011, at 8:08 PM

I think Lynn Hostetler should be left out of this. It was made clear that "There is no evidence against any others."

-- Posted by jleffel on Fri, Mar 4, 2011, at 8:49 PM

I find it hard to believe that neither Mr. Love's family nor his partner (Lynn Hostetler) knew of this wrong doing. I know plenty of healthcare professionals and none of them make the kind of money that can afford 15 vehicles or 4 different pieces of real estate. These other people may not have had a direct hand in the unauthorized billing, but they definately should not be considered innocent and without some liability. How can you be part owner in a company, and not know of the companys profits? Very sad..I have lost all faith in independent pharmacies.

-- Posted by Luckystar on Fri, Mar 4, 2011, at 8:57 PM

What John did was wrong. But not alot different then the federal government is doing. 10 years does not seem like that long for $3.575 mill.

-- Posted by patriotgames on Sat, Mar 5, 2011, at 7:27 AM

Bought his kids homes, cars, lavish weddings etc. Someone said he even bought his son-in-law a 60,000 dollar truck with cash (who does that). We had a lot of people (family and co-owners) with their eyes wide shut. He and his family should never be able to benefit from the sales of pharmaceuticals again.

-- Posted by Mrs. Positive on Sat, Mar 5, 2011, at 7:40 AM

If Lynn isn't involved, then one has to wonder why Lynn didn't confront his partner about why his partner was buying $3.5 million in boy toys on the salary of a partial owner in a small independent pharmacy. I confronted my former business partner when he purchased two Harley's, a $500,000 home, new boat, new Kubota tractor, a helicopter, airplane, and a jet ski within a two year period on a salary less than $50k year and then I went to the police. Surely Lynn had the same insight or maybe he just did a better job in hiding his.

-- Posted by Lafin on Sat, Mar 5, 2011, at 9:13 AM

This type of spending is nothing short of greed and envy. The $$ being spent was for personal gain...wrong!! Perfect example of man from small town who wanted to be the big dog. Wanted people to think they were "loaded". Wife, (not a victim by any means), played a big part and knew exactly what was going on (enjoyed it) and if you think different, I have some ocean front property in AZ. that I would like to sell you!!! Remember, this was our tax dollars being spent and enjoyed by losers. If found guilty, I hope he gets the maximum.

-- Posted by indygirl.com on Sat, Mar 5, 2011, at 9:22 AM

This is pathetic and I agree that his family had to be aware that their new found fortune wasn't legitimate. I for one am just thrilled to know that my tax dollars helped pay for his childs wedding and his familys new vehicles. I hope they give him the maximum punishment. RIDICULOUS!

-- Posted by dmh15 on Sat, Mar 5, 2011, at 9:59 AM

Wow, some people need to get a grip on reality! For all of you bashing Lynn Hostetler and the employees of Terre Haute Prescription shop, you have no clue on what is fact! Let me start by saying Lynn nor anyone working at that pharmacy besides John Love and his SON were allowed to look at the bank ledgers. For all Lynn Hostetler has done for this community, you should be ashamed to be accusing him of any involvement in this. Lynn sponsers ball leagues, parades and alot kinds of other things. All of this done on his OWN dime, not STOLEN money. The employees working there aren't getting money to keep their mouths shut. In fact, two hard working employees have already quit due to Mr. Loves actions. If his wife is allowed to purchase Mr. Hostetler's small part of ownership, then I think everyone should boycott the Terre Haute Prescription Shop. John Loves wife and the family of his still working there should not be entitled to reap the benefits of anyones hard earned money that would go towards paying for their prescriptions. After all, they all reaped the benefits of his criminal activity in my opinion. Unless, those 15 cars, 5 Harleys and real estate was all just for John and his wife (which I higly doubt.)

-- Posted by po-po on Sat, Mar 5, 2011, at 11:08 AM

You all are wondering what part if any Mr.Hostetler had in this. Reread the article it says they received a TIP, wonder where that came from.

-- Posted by sierrabloom on Sat, Mar 5, 2011, at 11:28 AM

DID YOU KNOW: House Republican's budget DID NOT CUT not one penny from the country's farm subsidy programs -- at a time when the farmers who receive the subsidies are enjoying record-high crop prices and incomes.

Just one category of that spending, the automatic "direct payments," totals more than $5 billion every year. Even top farm policy leaders in Congress have said the direct payments are hard to defend because taxpayers provide them even when farm prices and incomes are sky high, as they are today and have routinely been for the past five years. You don't even have to be a farmer to collect.

-- Posted by 2ndDegree on Sat, Mar 5, 2011, at 10:58 PM

As far as the state of our union... How about we stop pointing fingers and arguing about who put the bigger holes in the ship, that we are all on, and start plugging up the holes before we sink! We are sinking people.

I just venture to guess there is a whole lot of wasteful spending we can all agree on to stop the flooding and go from there, before there is nowhere to go at all. United we stand, divided we fall.

Pertaining to Lynn Hostetler, I am going to give him the benefit of the doubt. He was not charged with anything. Innocent until proven guilty.

-- Posted by localgal on Sat, Mar 5, 2011, at 11:54 PM

I completely agree with po-po's statement. There aren't too many that have done more for this community than Lynn Hostetler.

-- Posted by hd80 on Sun, Mar 6, 2011, at 7:23 AM

Everyone needs to read the article and stick to the facts. It clearly says that no one else was involved, including his family. If you think they aren't hurting right now think again. And lets all leave the kids out of it. His childs wedding needs to be dropped. Why take a young persons most important day of their live and ruin it. Now everytime they think of that special day it will be poisoned with these awful thoughts. They had nothing to do with the fraud. and anyone that knows the family would know that they do have big hearts. Every Christmas they bought for many families in this community. Not just at Christmas either. Throughout the years they have helped a lot of the less fortunate out. This money probably benefited more people than what you think. I know it is easy to see the bad and throw people under the bus, but that doesn't make you right. It takes a good hearted person to see past the mistakes and try to understand and forgive. One day when you all make a mistake I hope the world is kinder to you and doesn't say these hurtful things that make you feel like life is not worth living. We all make mistakes, its part of life. How we judge and treat others really shows our character and some of your characters aren't much better than a criminal.

-- Posted by KAT01 on Sun, Mar 6, 2011, at 3:23 PM

Uh....generous? Why wouldn't he be? He was spending OUR money!

-- Posted by folger1 on Sun, Mar 6, 2011, at 4:23 PM

Mr Love is accused of some pretty serious crime. What everyone needs to do instead of acting like they are the paid mouthpiece for the community is wait till there is an ACTUAL CONVICTION! If Mr. Love is convicted than he needs prison time no matter how many families he has helped or puppies saved etc. What I have noticed about the town/area of Brazil is a lot of people seem to downplay the issue if it is their mayor, their favorite resterant owner etc etc etc. Everyone is for crime control til thier favortie allright guy or gal gets arrested/incarcerated...then they are an activist for police/prison reform. Then it's those mean police/correctional folks.

-- Posted by alienresident on Sun, Mar 6, 2011, at 7:30 PM