JACKSONVILLE, Fla. — Two local men have been convicted of fraud and money laundering charges after targeting an insurance company that benefits military families.
A federal jury has found Scott Balotin, 51, of St. Johns County and Thomas Jones, 52, of Jacksonville guilty of conspiracy to commit health care fraud and money laundering.
According to the United States Attorney's Office, Balotin and Jones were indicted on October 30, 2019.
The evidence presented at the trial revealed that Balotin owned and operated Casepark, a marketing firm in Jacksonville.
Casepark utilized sales representatives to market compounded medication, including creams for pain and scars, to health care benefit program beneficiaries, according to a news release from the United States Attorney's Office.
Authorities said the creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000, for a one-month supply.
Casepark focused its promotional efforts on TRICARE beneficiaries, which were military families, with the understanding and belief that TRICARE would pay claims for the compounded medications.
The prescriptions generated for the recruited TRICARE beneficiaries were directed to various pharmacies to be filled.
Authorities said Casepark received approximately 55 percent of the after-cost amount of each claim paid by a health care benefit program to a pharmacy that filled each prescription.
Casepark and other alleged co-conspirators paid the sales representatives a percentage of the paid claims they received from the pharmacies.
Other co-defendants who previously pleaded guilty to conspiracy to commit healthcare fraud related to this case include Pablo Ortiz, Derwin Allen, David Stevens, and Sam Todd.
Each faces a maximum penalty of 10 years in federal prison. The sentencing hearings are scheduled for January 2022.
