Palm Beach Gardens’ Ex-Pharmacy CEO Pleads Guilty to Federal Investigators for False Statements
Former Palm Beach Gardens pharmacy CEO, Patrick Smith, could face a maximum of five years in prison after pleading guilty on Friday to charges of lying to federal agents. Smith, 71, was the CEO of Patent Care America (PCA), a compounding pharmacy based in Broward County. Federal investigators alleged that Smith provided false information to agents while they were probing PCA for various health care fraud offenses.
Court documents reveal that Smith admitted to meeting voluntarily with agents from the Defense Criminal Investigative Service (DCIS) in March 2020. The purpose of the meeting was to aid the ongoing investigation into health care fraud and the payment of illegal kickbacks by PCA. Federal prosecutors assert that Smith deliberately misled the agents about his involvement in hiring marketing groups, which were reimbursed by PCA for recruiting Tricare patients.
Contrary to Smith’s claims during the interview, investigators discovered evidence that he had regular contact with the marketing groups and exerted control over their selection and terms of engagement. The Department of Justice disclosed that more than $40 million in kickbacks were paid to these marketers by PCA. So far, twelve individuals connected to PCA have been convicted and sentenced to prison terms of up to 13 years, for their participation in the fraudulent scheme.
A sentencing date for Smith has not yet been scheduled, leaving the matter within the discretion of the court. The guilty plea has further illuminated the extent of the deceptive practices employed by PCA, adding to the mounting evidence against the pharmacy and its former CEO. The case serves as a reminder of the government’s commitment to combatting health care fraud and holding accountable those who unlawfully exploit the system for personal gain.
As investigations continue to unfold, the pharmaceutical industry faces increased scrutiny and pressure to implement stronger safeguards against fraudulent schemes. Authorities are hopeful that this case will serve as a deterrent to other individuals and entities contemplating similar illegal activities. The ultimate goal remains ensuring the integrity and viability of the health care system, so that patients can receive the quality care they deserve without falling victim to exploitation.
