On Friday, it was announced that 38-year-old Brian David Haney and 45-year-old Kevin Michael Gray were each sentenced to 28 months in federal prison for bribery and tax violations. Haney, who was the partial owner of Vidor Pharmacy, and Gray, who was the operator of Family Pharmacy Inc., were sentenced to prison in connection with a health care fraud scheme. Both defendants will pay a $100,000 fine and $6,500 for the cost of prosecution.
Haney will pay $351,947 in restitution to the IRS, while Gray will pay $245,692 in restitution. On December 14, 2016, Haney pleaded guilty to willful offer and payment of illegal remuneration in relation to a federal health care program and one count of making and filing a false income tax return. Gray pleaded guilty to the same charges on April 13, 2016
By pleading guilty, the defendants admitted that they paid kickbacks over a two-year period ending in January of 2014. Kickbacks totaling $813,560.87 were paid to chiropractor Garry Wayne Craighead. Craighead organized and controlled several health care related entities, which received substantial revenue from the United States Department of Labor’s health care benefit programs.
Craighead was paid cash for patient referrals for federally-insured employees in need of prescription services. Both defendants admitted to filing a false tax return, which dramatically understated their total income, taxable income and adjusted gross income. On December 4, 2015, Craighead pleaded guilty to one count of engaging in monetary transactions in property derived from specified unlawful activity and one count of solicitation and receipt of illegal remunerations in federal health care programs.
In June of 2016, Craighead was sentenced to 14 years in federal prison. Again, Brian David Haney and Kevin Michal Gray have both been sentenced to 28 months in federal prison and three years of supervised release. More details can be found here.