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CaseNo.18 .. .5371
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18U.S.C.j1347
42U.S.C.j 1320a-7b(b)(1)(A)
42U.S.C.j 1320a-7b(b)(2)(B) /o'stmuvo
18U.S.C.j 1957(a)
21U.S.C.j331(k)
18U.S.C.j982(a)(7)
18U.S.C.j982(a)(1) FELED ::.
7 p.G.'
18IJ-s-c.j981(a)(1)(C)
UNITED STATES oF AM /RICA N0V 29 22$
S-X VER M.LARIMORE
CLERICtkS.DIST.CT
VS. S.D.pfILA.- MIAMI
M O N TY R AY G R O W ,
Defendant.
IN D IC TM EN T
G EN ER AL A LLEG A TIO NS
Tricare w as a health care insurance program of the U nited States D epartm entof
D efense. Tricare provided civilian health benefits for m ilitary personnel,m ilitary retirees,and
m ilitary dependents w orldw ide. The Tricare program provided m edicalcoverage for Uniform ed
Service m em bers including those w ho w ere active duty and reservists that w ere a part of the
follow ing: U .S. Arm y, U .S. A ir Force, U .S. N avy, U .S. M arine Com s, U .S. Coast Guard,
Reserve,N avy Reserve,M arine Corps Reserve,A irN ationalG uard,AirForce Reserve,and U .S.
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 2 of 23
CoastG uard Reselve and their fam ilies. This program also covered sulvivors,form er spouses,
M edalofHonor recipientsand their families,and others registered in the Defense Enrollm ent
In order to pay a claim ,Tlicare required thatthe item or selvice being billed m ust
Tricare beneficiary.
6. Phannacy com pounding was a practice in w hich a licensed pharm acist,a licensed
physician,or,in the case ofan outsourcing facility,a person under the supervision ofa licensed
Tlicare had stlict regulations regarding the use of telem edicine as a m ethod of
treating Tricare patients. Tlicare did notconsidertelem edicine a substitute forface to face health
care exceptin certain lim ited situations. One proper use ofa telem edicine episode w asw hen the
patientcould notm eeta m edicalprofessionalface to face because they w ere in a rem ote location.
Another proper use of a telem edicine episode w as a situation in which there w as a need for
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 3 of 23
continuity ofcare w ith a specific m edicalprofessional.In addition,the originating site where the
beneficiary w as located for the telem edicine episode m ust be a location where an authorized
Tricare provider norm ally provided m edical senrices to Tricare beneficialies. A patient's hom e
8. UnderFloridaStatutej465.023(1)(h),drugsmayonlybeprescribedpursuanttoa
valid practitioner-patient relationship that included a docum ented patient evaluation,including
history and physical exam ination adequate to establish a diagnosis for w hich the drug w as
prescribed.
9. Flurbiprofen and Loperam ide w ere 'tdrugs''w ithin the m eaning ofTitle 21,United
10. PursuanttoTitle21,UnitedStatesCode,Section353(b)(1),theactofdispensinga
prescription dnlg w ithouta valid prescription w as deem ed to be an actthatresulted in the drug
Com pany l w as a corporation organized under the law s of the State of Florida,
with its principal place of business located in Brow ard County, that purportedly created and
C O U NT 1
C onspiracy to D efraud the U nited States and Pay and R eceive H ealth C are K ickbacks
(18U.S.C.j371)
Paragraphs 1 through 14 ofthe GeneralA llegations section ofthislndictm entare
From on or about Septem ber 29, 2014, through on or about June 29,2015, in
M iam i-Dade and Brow ard Counties,in the Southern D istrict of Florida, and elsew here, the
defendant,
M O N TY R AY G R O W ,
through deceitful and dishonest m eans,the law ful governm ent functions of the U nited States
Departm entofD efense in its adm inistration and oversightofthe Tricare program in violation of
thatis:
to violateTitle42,UnitedStatesCode,Section l320a-7b(b)(1)(A),byknowingly
and w illfully soliciting and receiving rem uneration,including kickbacks and bribes,directly and
indirectly,overtly and covertly,in cash and in kind,in retul'n forrefening an individualto a person
forthe furnishing and anunging forfurnishing ofany item and service forw hich paym entm ay be
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 5 of 23
indirectly,overtly and covertly,in cash and in kind,to a person to induce such person to purchase,
lease,order,and arrange for and recom m end purchasing,leasing,ordering,and anunging for and
paym entm ay be m ade in whole and in pal4 undera Federalhealth care program ,thatis,Tricare.
indirectly,overtly and covertly,in cash and in kind,to a person to induce such person to refer an
individualto a person forthe furnishing and arranging forthe furnishing ofany item and service
for which paym ent m ay be m ade in w hole and in partby a Federalhealth care program ,thatis,
Tricare.
lt was a purpose of the conspiracy for the defendant and his co-conspirators to
Company 1;(c)submitting and causing the submission ofclaimsto Tricare for compounded
medicationsthatCompany 1purportedtoprovidetothoseTricarebeneficiaries;and (d)diverting
proceeds ofclaim s of the recruited and referred beneficiaries for their personaluse,the use and
The m anner and m eans by w hich the defendant and his co-conspirators sought to
accomplishtheobjectsandpumoseoftheconspiracyincluded,amongothers,thefollowing:
4. M O N TY R A.
Y G RO W ,through M GTEN ,solicited and received approxim ately
$20 million in kickbacks from Company l in exchange for recnliting and referring Tricare
beneficiaries to order and purchase com pounded m edications from C om pany 1,know ing that
Com pany 1w ould billTricare forcom pounded m edicationspurportedly dispensed to the recruited
6. M O NTY R A.
Y G RO W offered and paid kickbacks to Tricare beneficiaries in
exchange forTricare beneficiaries'agreeing to order and receive com pounded m edications from
Com pany 1.
telem edicine com paniesthatcaused health care providers to issue prescriptions forCom pany 1's
based upon com pounded m edications dispensed to the recruited Tricare beneficiaries.
thatthe kickback paym ents could be m ade to look like salary paym ents.
10. A s a result of these claim s, Tricare m ade paym ents to Com pany 1 in the
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 7 of 23
beneficiary N .P. about kickback paym ents she w ould receive in exchange for ordeling and
beneficiary R.B . about kickbacks that he would receive in exchange for his w ife ordering
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 8 of 23
approxim ate amountof$1,680 to Trkare benetk iary J.C.in exchange forordering compounded
m edication from Com pany 1.
approxim ate amountof$900 to Tricare beneficiary J.C.in exchange forordering com pounded
m edication from Com pany 1.
approxim ate amountof$1,600 to Tricare benetk iary J.C.in exchange forordering compounded
m edication from Com pany 1.
8
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schem e,M O N TY R AY G R O W held a conference callw ith co-conspirators advising them that
they had to becom e em ployeesofCom pany 1 in orderto continue getting paid forrecruiting and
G RO W a link to a CBS N ew sstory aboutallegationsoffraud pum ortedly com m itted by Com pany
approximate am ountof $690,733 as paym ent in exchange for his recruitment and referral of
Tricare beneficiaries to Com pany 1.
CO UN TS 2-9
H ealth C are Fraud
(18U.S.C.j 1347)
Paragraphs l through 14 ofthe GeneralA llegationssection ofthisIndictm entare
M O N TY R AY G R O W ,
in connection w ith the delivery of and paym entfor health care benefits, item s,and services,did
knowingly and willfulty execute,and attemptto execute,a schem eand artifice to defraud ahealth
care benefitprogram affecting com m erce,as defined by Title 18,United States Code, Section
tounlawfullyenrichthemselvesby,amongotherthings:(a)submittingandcausingthesubmission
offalseand fraudulentclaimsto Tricare;(b)concealingthe submission offalse and fraudulent
claimsto health carebenefitprograms,and thereceiptand transferoffraud proceeds'
,and (c)
diverting fraud proceeds for theirpersonaluse and benefit,the use and benefitofothers and to
furtherthe fraud.
theobjectiveoftheschemeandartificeincludedthefollowing:
M O N TY ILAY G R O W offered and paid kickbacks to accom plices, including
com pounded m edications from Com pany 1 regardless ofw hether they needed the com pounded
m edications.
10
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 11 of 23
Tricare beneficiaries'agreeing to receive com pounded m edications from Com pany 1,knowing
com pounded m edications know ing thatTricare beneficiaries w ere notphysically exam ined by a
licensed m edicalprofessional.
com pounded m edications that w ere not m edically necessary and not properly prescribed by a
licensed m edicalprofessional.
O n or aboutthe dates setforth asto each countbelow ,in Brow ard County,in the
M O N TY R AY G R O W ,
in connection with the delivery of and paym entforhealth care benetits,item s,and services,did
know ingly and w illfully execute,and attem ptto execute,the above-desclibed schem e and artifice
to defraud health care benefitprogram saffecting com m erce,as defined by Title 18,United States
and controlof,said health care benefitprogram s,in thatthe defendantsubm itted and caused the
subm ission offalse and fraudulentclaim sseeking the identified dollar am ounts,and representing
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 12 of 23
that Com pany 1 provided com pounded m edications thatw ere m edically necessary and properly
CO UN TS 10-30
R eceiptofK ickbacks in C onnection w ith a FederalH ealth C are Program
(42U.S.C.j1320a-7b(b)(1)(A))
Paragraphs 1 through 14 ofthe GeneralA llegations section ofthis lndictm entare
On or about the dates enum erated below ,in Brow ard County, in the Southem
M O NTY R AY G R O W ,
did know ingly and w illfully solicitand receive any rem uneration,that is,kickbacks and bribes,
overtly and covertly,in cash and in kind,including by w ire transfer,as setforth below ,in return
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 13 of 23
for referring an individualto a person for the furnishing and anunging forthe furnishing of any
item and service forw hich paym entm ay be m ade in whole and in partundera Federalhealth care
program ,thisis,Tricare.
12 12/9/2014 $210,763
13 12/18/2014 $288,290
14 1/2/2015 $732,974
15 1/20/2015 $450,000
16 1/20/2015 $436,490
17 1/30/2015 $1,206,817
18 2/13/2015 $1,964,741
19 2/27/2015 $2,322,451
20 3/13/2015 $3,644,894
21 3/27/2015 $1,630,903
22 4/10/2015 $62,500
23 4/10/2015 $4,425,544
24 4/27/2015 $1,832,268
25 5/19/2015 $690,733
26 5/29/2015 $188,844
27 5/29/2015 $43,164
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 14 of 23
29 6/26/2015 $69,615
30 6/29/2015 $60,360
C O U NT S 31-37
Paym entofK ickbacksin C onnection w ith a FederalH eaIth C are Program
(42U.S.C.j 1320a-7b(b)(2)(B))
Paragraphs 1 through 14 ofthe G eneralA llegations section ofthis Indictm entare
O n or about the dates enum erated below ,in Brow ard County,in the Southern
M O N TY R AY G R O W ,
did know ingly and w illfully offerand pay any rem uneration,thatis,kickbacksand bribes,directly
and indirectly,overtly and covertly,in cash and in kind,including by w ire transfer,as setforth
below ,to aperson,to induce such person to purchase,lease,order,and arrange forand recom m end
purchasing,leasing,and ordering any good,facility,service and item for which paym entm ay be
32 2/18/2015 $1,680
14
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34 3/18/2015 $1,650
35 4/22/2015 $900
36 4/22/2015 $1,600
37 4/28/2015 $1,000
C O U NT S 38-42
M oney L aundering
(18U.S.C.51957)
On or about the dates specified below ,in Brow ard County, in the Southern D istrict of
Florida, and elsewhere, M O NTY ItAY G R O W , as set forth in each count below , did
Itis further alleged that the specified unlaw fulactivity is the solicitation and receipt of
kickbacks in connection with a Federalhealth care benefitprogram ,in violation of Title 42,
United StatesCode,Sections1320a-7b(b)(1)(A).
CO UN T S 43-52
Causing The M isbranding O fD rugs W hile H eld For Sale
(21U.S.C.jj331(k)and 333(a)(1))
O n or about the dates set forth below ,in Brow ard County, in the Southern Distlict of
l6
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 17 of 23
M O N TY R AY G R O W ,
to adm inisterthe dnlgs,w hile the drugsand com ponents ofthese prescription drttgsw ere held for
sale and afterthe drtlgs had been shipped in interstate com m erce,w hich acts resulted in the dnlgs
FO R FEITU RE
(18U.S.C.j982(a)(7);18U.S.C.j982(a)(1))
The allegations of this lndictm ent re-alleged and incorporated by reference as
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 18 of 23
though fully setforth herein forthe purpose ofalleging forfeiture to the U nited States ofA m elica
Upon conviction ofa ççFederalhealth care offense,''as defined in Title 18,U nited
the defendant shall forfeitto the United States of A m erica,pursuant to Title 18,United States
Code,Section 982(a)(7),anyproperty,realorpersonal,thatconstitutes,orisderived,directlyor
indirectly,from grossproceedstraceable to the com m ission ofsuch offense.
alleged in Counts38 through 42 ofthis lndictm ent,the defendantshallforfeitto the U nited States
RealProperty:
The realproperty known and num bered as 5803 M ariner Street,Tam pa,
Florida,together w ith all im provem ents,appurtenances, attachm ents,and fixtures thereon and
therein;
Bank A ccounts'
.
Group,upto$19,536,743.31(US);
18
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 19 of 23
accountnum ber898067684176 held atBank ofA m erica,N .A .in the nam e ofM GTEN M arketing
Group,upto$19,536,743.31(US);
(d) Allprincipal,deposits,interest,dividends,and otheramountscredited to
accountnum ber229019916597 held atBank ofAm erica,N .A .in the nam e ofM onty Grow ,up to
$9,604,980.96(US);
A l1principal,deposits,interest,dividends,and other am ounts credited to
account num ber 869-914682 held at TD Am eritrade in the nam e of M onty R ay Grow , up to
$3,000,000 (US);
A utom obiles'
.
health care offenses alleged in this lndictm ent,w hich the U nited States of A m erica w ill
19
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 20 of 23
or any propel'ty traceable to such property,w hich the United States ofA m erica w illseek
asaforfeituremoneyjudgmenttobeimposedagainstthedefendantaspartofhissentence.
A1lpursuantto Title18,UnitedStatesCode,Section982(a)(7),Title 18,UnitedStates
Code,Section982(a)(l),Title18,UnitedStatesCode,Section981(a)(1)(C).
A TRU E B ILL
FO REPER SON
iD O A .FERRER
rw- m
U N1 D STA TE A TTO RN EY
KE . RSEN
A SSISTAN T UN ITED STA TES A TTO RN EY
20
UNITED STATES DISTRICT CO URT
Case 1:16-cr-20893-FAM Document 3 Entered
SOUTHERN DISTRICTon
O FFLSD
FLORIDADocket 11/30/2016 Page 21 of 23
VS.
CERTIFICATE O F TRIAL ATTO RNEY'
M ONTY RAY GROW ,
Defendant.
/ Superseding Case Inform ation:
Interpreter: (YesorNo) NO
ListIanguageand/ordialect
Thiscase w illtake 8 daysforthe partiesto try.
Please check appropriate category and type ofoffense Iisted below:
(Checkonlyone) (Checkonlyone)
I Oto 5 days Petty
11 6to 10 days X M inor
11 11 to 20 days M isdem .
IV 21 to 60 days Felony X
V: 61 days and over
6. Hasthiscasebeen previouslyfiled inthisDistrictCourt? (YesorNo) NO
Ifyes:
Judge: Case No.
(Attachcopyofdisposi
tiveorder)
Hasacomplaintbeenfiled inthismatter? (YesorNo) NO
Ifyes:
M agistrate Case No.
Related M iscellaneousnum bers:
Defendantts)infederalcustodyasof
Defendantts)instatecustodyasof
Rule 20 from the Dlstrlcto
lsthisapotentialdeathpenaltycase?(YesorNo) No
Does thiscase originate from a m atter pending in the Northern Region ofthe U.S.Attorney's Office priorto
October14,2003? Yes X No
Does this case originate from a matter pending in the CentralRegion ofthe U.S.Attorney's Office priorto
Septem ber1,2007? Yes X No
KEVIN J.LARSEN
ASSISTANT UNITED STATESAU O RNEY
CourtID No.A5501050
Case 1:16-cr-20893-FAM Document 3 Entered on FLSD Docket 11/30/2016 Page 22 of 23
D efendant'sN am e:M O N TY R AY G R O W
C aseN o:
Count#:l
Conspiracv to Defraud the United Statesand Pav and Receive H ealth Care K ickbacks
*M ax.Penalty: Five(5)years'imprisonment
Counts#:2 -9
*M ax.Penalty'
. Five(5)years'imprisonmentastoeachcount
Counts#:31-37
Counts#:38-42
M onev Launderin/
Counts #:43-52
*M ax.Penalty: One(1)yearimprisonmentastoeachcount