March 6, 2006
www.usdoj.gov/usao/aln

HALEYVILLE PHARMACIST PLEADS GUILTY TO HEALTH CARE FRAUD AND DRUG MISBRANDING

BIRMINGHAM, AL - GERALD BURLESON pled guilty today to two counts of a Federal Information charging him with Health Care Fraud and Drug Misbranding. The guilty plea is announced today by U.S. Attorney Alice H. Martin, Special Agent in Charge Federal Bureau of Investigation, Carmen Adams, and Special Agent in Charge U.S. Department of Health and Human Services, Linda Little.

According to U.S. Attorney Alice H. Martin, BURLESON, 63, of Haleyville pled guilty to defrauding Medicare in connection with drugs dispensed to Medicare patients by City Pharmacy of Haleyville. BURLESON, who operated the pharmacy, received orders from physicians prescribing medications which were commercially available in the strengths prescribed. Instead of dispensing medications as ordered by the physicians, BURLESON dispensed medication that he had compounded from ingredients acquired by him, and billed Medicare more than the cost of commercially available doses. BURLESON then placed his compound medication into vials which were dispensed to patients, without the physicians’ knowledge, and at an unlicensed location. BURLESON filed claims with Medicare and received reimbursement for the medications he dispensed. BURLESON also pled guilty to Drug Misbranding which related to dispensing the compounded medications to a specific patient.

“Cheating Medicare won’t be tolerated,” stated U.S. Attorney Alice H. Martin. “Health Care Providers who use fraud and deceit to abuse the system will be prosecuted to the fullest extent of the law,” added U.S. Attorney Martin.

BURLESON could receive a maximum of 13 years in prison and files totaling $260,000. Sentencing will be scheduled by U.S. District Judge Scott Coogler for a later date.

Special Agents of the Office of Inspector General, Department of Health and Human Services, the Office of Criminal Investigations, Food and Drug Administration; and the Federal Bureau of Investigation have investigated this case. Assistant United States Attorney Hubert H. Henry is prosecuting this case on behalf of the U.S. Government.