Pharmacist accused of netting $3.5 million through fraud

A Terre Haute pharmacist faces a possible 10-year prison sentence if convicted of health care fraud and money laundering in a scheme that netted him more than $3.57 million, federal prosecutors say.

John D. Love of Brazil, the owner of the Terre Haute Prescription Shop, faces one count of health care fraud and two counts of money laundering. U.S. Attorney Joe Hogsett said.

The scheme was the largest case of health care fraud and money laundering ever discovered in the Southern District of Indiana, Hogsett said during a news conference Friday.

"I want to make it loud and clear, that when individuals, who through their own greed, take advantage of the health care system for their own greed, take benefits intended to serve the neediest of Indiana's citizens, it will not be tolerated," Hogsett said.

Assistant U.S. Attorney Brad Shepherd said has been issued a summons ordering him to surrender.

A phone message seeking comment left Saturday at Love's home was not immediately returned.

A tip from an outside contractor uncovered information in an audit that prompted the investigation by the Federal Bureau of Investigation, the state's Medicaid Fraud Enforcement Unit and other agencies, Shepherd said.

Investigators said Love would enter bogus prescriptions in Indiana's Medicaid system, wait for his claims to be submitted, and then void them before others could see the orders had not been filled. Love billed Medicaid for more than 6,800 units of various prescription drugs from January 2006 through September 2010, while actually ordering only 156 units of the same drugs.

Shepard said Love was the only person being charged in connection to the case. A partner is now running the pharmacy.

Love used at least $3 million of the profits to pay for four parcels of land, 15 vehicles, a wedding for one of his children and other personal expenses, prosecutors said. Federal authorities have seized property including five Harley Davidson motorcycles, two sports cars, four SUVs, two pickup trucks, one recreation vehicle and funds from multiple bank accounts.

Shepard, who is prosecuting the case for the government, added Love faces a maximum of 10 years in prison and a $250,000 fine if convicted of the allegations.