United States of America v. Robert L. Crites

Montgomery, Alabama, commercial litigation lawyer represented the Defendant in a False Claims Act violation case.

Robert L. Crites, age 67, and others associated with Extraordinary Scripts participated in an illegal kickback scheme in which they identified and referred patients across the country to Cloverland Pharmacy in Montgomery, Alabama. Crites primarily recruited beneficiaries of TRICARE, the health care program for members of the U.S. military and their families. In turn, the pharmacy paid Crites and his co-conspirators kickbacks for each referral.

The Anti-Kickback Statute prohibits the offering, paying, soliciting, or receiving of compensation to induce referrals for items or services reimbursable by federally funded healthcare programs. The statute is designed to safeguard medical decision-making by ensuring that patient care is not influenced by improper financial incentives.

Crites was the last remaining defendant in the case. The United States previously settled with five other co-defendants named in the suit as well as others involved in a parallel civil forfeiture action.

This matter reflects the government’s ongoing commitment to combating healthcare fraud and protecting the integrity of federal healthcare programs. The False Claims Act remains one of the government’s most effective tools in this effort.

This case was investigated by the Defense Criminal Investigative Service, Department of Health and Human Services-Office of Inspector General, and Federal Bureau of Investigation, and was handled for the United States by Assistant United States Attorney Stephen D. Wadsworth.

The $31,039,134.82 judgment against Crite includes $16,342,424.82 in damages — which is three times the $5,447,474.94 in losses sustained by TRICARE — as required under the False Claims Act, as well as $14,696,710 in civil penalties imposed by the court.