You know me…
I’m all about exposing the dirty players on the street, and trying to tap into the minds of the “smart money.”
I’ve come across a story that gives the infamous Pharma Bro, Martin Shkreli, a run for his money.
It involves a CEO defrauded insurers and one state’s health benefits program…
A scam that amounted to $50M.
I want to highlight just how much dirty activity goes on in this world, and how to flip the script… and take advantage of these players in the game.
How This CEO Scammed Insurers And One State’s Health Benefits Program
Some people use their executive power for good.
Making sure their company is running smoothly while making money. Employees are taken care of. And sometimes reaching out and doing some good in the world.
Not this villainess of a CEO. Instead, she used her position as head honcho to defraud insurers and one state’s health benefits program. A scam that cost these programs $50 million.
The CEO personally received a sexy cut of the profits.
Now finally admitting guilt she is on the hook for all of it.
Every dime scammed is now her job alone to pay back.
Martin Shkreli made a name for himself when he became a stain on Big Pharma’s rep. But he is just about to see an end to his reign as the villain of the pill underworld.
The CEO Behind The Scheme
Meet Hayley Taff, the CEO of Central Rexall Drugs, a popular Louisiana pharmacy. But besides serving the swamplands C. Rexall markets and ships prescription compounded medications to New Jersey and other states.
Now compounded meds are a combo of ingredients for a variety of ails. Things like scars, pain, antifungals, and libido creams. But it can also cover vitamin combos as well.
CEO Taff and her minions discovered an evil loophole where these drugs and money were concerned.
Specific insurance plans offered by a certain company would reimburse the company THOUSANDS OF DOLLARS for a 1-month supply of these compounded treatments.
This company covered the health plans for New Jersey’s state and local government, schools, firefighters, and cops that had this company as their provider.
Upon learning this tidbit this She-Devil went to work.
Taff’s minions began to design medications.
Tweaking the ingredients to get high reimbursements instead of… you know create drugs to actually treat the patient.
Let me say it again, the drugs these people received were thrown together based on price tag and NOT based on the patient’s medical needs. Even doctors were kept in the dark on the changes to the scripts.
And all was done at Taff’s direction purely being driven by her greedy desires.
Then C. Rexall would send false prescription claims to the benefits administrator to test out their creations.
Their scam was all trial and error. Using these bogus claims to hunt for the sweet spot.
After a certain point, the benefits administrator would stop covering Taff’s greedy combos. Quickly C. Rexall would be back at the drawing board, whipping up new money-driven creation.
The new creation would be sent to patients. Again, with the prescription being personalized to fit a price tag and not medical needs.
It All Came Crashing Down…
Taff, who was one step away from going full Sanderson sisters, finally admitted key details about the conspiracy after pleading guilty this year.
Central Rexall, a freakin pharmacy, had stopped caring about the health of the patients and their need for these prescription treatments. The devil herself admitted that C. Rexall was all about that money, honey.
Taff also admitted that at her direction the company stopped asking for patients to cover their co-pay. Despite telling the pharmacy’s benefits administrator that it was collecting these payments.
The company continued to ship customers their scripts even without them paying their copay… All because C. Rexall was making so much money with its designer scripts it did not even need this chump change.
CEO Taff and her minions were the ones behind the many, MANY bogus insurance claims for compounded medications that had NO medical necessity. C. Rexall made over $50 million on just the compounded medications shipped to New Jersey.
With Lady Taff pulling in $1,553,616 for Central Rexall for her hand in the scam.
But now it is all on her shoulder to pay back.
As part of her plea agreement, it will be her job to pay back over $51 million and give up the $1.5 million she made from the scam.
While this dirty player was caught…
I can tell you my Dollar Ace Scanner picks up on some interesting activity in the options market…
With it, I’m able to follow some of Wall Street’s brightest minds into some of their best ideas. The best part is that it’s 100% legal.