New Orleans Man is Charged With Conspiracy to Commit Health Care Fraud and Money Laundering

NEW ORLEANS - U.S. Attorney Peter G. Strasser, announced that JOSEPH CAMPO (CAMPO), age 78, a resident of New Orleans, Louisiana, was charged on November 17, 2020 with one count of conspiracy to commit health care fraud and money laundering.

According to the Bill of Information, CAMPO was a licensed pharmacist in the State of Louisiana and worked as the Pharmacist-in-Charge (“PIC”) at Prime Pharmacy Solutions (“Prime”), which was located in Slidell, Louisiana.  Between 2014 and 2016, Prime operated as a primarily closed-door pharmacy that was in the business of mixing and filling prescriptions for compounded medications that were reimbursed by health care benefit programs, including TRICARE, a health care benefit program for United States military personnel and their families. 

CAMPO, and other co-conspirators, acting on behalf of Prime, selected formulas for compounded medications, not based on scientific evaluations of effectiveness or individualized patient need, but rather, to maximize reimbursement from TRICARE and other health care benefit programs.

Prime then mass produced these High-Yield Compounded Medications and created a series of preprinted prescription forms encouraging and directing prescribers/doctors to prescribe these High-Yield Compounded Medications.  The scheme involved defrauding TRICARE of approximately $16 million dollars.

If convicted, CAMPO faces a possible maximum sentence of five years’ imprisonment, up to three years of supervised release, a $250,000 fine, and a mandatory $100 special assessment fee.

The case is being investigated by the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General. 

The United States Attorney’s Office, Eastern District of Louisiana stated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.  The prosecution of the case is being handled by Assistant U.S. Attorney Kathryn McHugh.