Ivor Jallah, a 37-year-old Dallas-based pharmacy owner, was sentenced to 10 years in prison on Tuesday for his role in a scheme that defrauded insurance companies out of over $41 million dollars.
The sentence, handed down by U.S. District Judge Sam Lindsay, follows Jallah’s guilty plea to conspiracy to commit healthcare fraud earlier this year.
The U.S. Attorney’s office announced the sentencing via press release on Wednesday, expanding on the implications of Jallah’s actions on both the healthcare system and the American taxpayer.
“By billing for prescription medication patients never needed nor received, these defendants brazenly lined their pockets at the expense of each and every client who paid into health insurance,” stated U.S. Attorney Leigha Simonton.
“Healthcare is already a significant expense for many Americans. We cannot and will not allow pharmacy operators to abuse the system in this way,” she added.
Jallah, along with his co-conspirator Shannon Turley, 46, operated at least nine pharmacies in Texas, including locations under the names “Preferred RX” and “EZ Pharmacy.”
The duo’s fraud operations involved paying marketers for patients’ personal information, which they used to submit bogus prescriptions to insurance companies. In some cases, they paid physicians to stamp prescription forms without ever having seen the patients, while in other instances, they used doctors’ stamps without their consent, according to the U.S. Attorney’s Office.
The scheme came to light following insurance audits revealing the gap between the prescriptions billed and the medications dispensed. At first, the pharmacies shipped out a small fraction of the medicines, but as the scheme progressed, Jallah stopped sending out any drugs altogether, relying solely on fake or forged documents to support the scheme.
Jallah and Turley submitted nearly $46 million in fraudulent claims throughout their operation, with almost $41 million reimbursed before the scheme was exposed. The defendants also created false drug purchase invoices and faux prescription delivery logs, even forging patient signatures when needed.
“Healthcare fraud schemes are more complex, more resource-consuming, and more costly to the American taxpayer than ever. For this defendant, as one avenue to personal enrichment ran its course, he simply began operating a new pharmacy or engaging in a new method to circumvent existing system safeguards,” said P. J. O’Brien, Dallas FBI Acting Special Agent.
Prosecutors revealed that Jallah used millions from his fraudulent activities to support a lavish lifestyle and pursue a career in Hollywood. He aimed to be a director and screenwriter, according to Fox 4 KDFW, and was even credited on IMDb for the 2019 film “Grand Isle,” starring Nicolas Cage.
As part of his sentence, Jallah was ordered to pay restitution of $41,494,313.97. Meanwhile, Turley is scheduled to be sentenced next month after pleading guilty in November 2023.
The U.S. Attorney’s Office also reported that eight additional defendants have pleaded guilty in connection with this case, receiving a total of 290 months in prison, while two more are currently awaiting sentencing.
