Former CEO of Allergan faces fraud charges in Medicare fraud investigation
A former CEO of a company that was once one of the nation’s biggest Medicare Advantage drug companies faces felony charges for allegedly hiding $1.5 billion in losses from Medicare in the late 2000s, according to federal prosecutors.
Eddy Lee, who led Allerga Pharmaceuticals Inc., pleaded guilty to wire fraud in October and faces up to 20 years in prison if convicted.
Prosecutors say Lee, whose LinkedIn profile listed his address as a “medical practitioner,” paid doctors in his area to make fraudulent claims that he was in charge of the drug company.
Lee allegedly billed Medicare for drug prescriptions, billed Medicare and other federal programs for services provided and billed Medicare, which has been unable to recover the money.
The government also charged Lee and another former Allergga executive with lying to Medicare and the federal government about the losses.
Prosecutors say Lee allegedly used a company account to funnel money to the company and the Medicare fraud unit.
Lee resigned in February 2017.
His attorney did not immediately respond to a request for comment.
The federal investigation stems from a probe into the Medicare Advantage business, which included the company’s medical clinics, pharmacy chain and drug distribution network.
The government says Lee funneled millions of dollars in Medicare reimbursements to himself and other executives.
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