Houston pharmacy CEO and accountant both arrested after officials busted a multi-million dollar Medicare fraud scheme

by Jenny Mount · Mar 12th, 2021 3:15 pm

Last Updated Mar 14th, 2021 at 11:06 am

Federal officials have busted a Medicare fraud scheme that uncovered numerous luxury items such as a Ferrari, a Bentley, and a $1.5 million mansion in Houston, among others.

The bust of the $134 million health fraud scheme led to the arrests of a Houston pharmacy CEO Mohamed Mokbel and his accountant Fathy ElSafty. Both men have been charged on one count to commit healthcare fraud, three counts of healthcare fraud, and four counts of money laundering.

Mokbel and ElSafty of 4M Pharmaceutical allegedly offered patients diabetic supplies and topical creams that were medically unnecessary. Even though most patients refused the supplies, patients' insurance plans were still billed. According to federal investigators, 4M Pharmaceutical even requested and billed for prescriptions after patients' deaths.

"The funds were allegedly used, in part, to pay for Mokbel's $1.5 million residence, $15 million in gambling and casino expenses, and purchases and payments for a Ferrari and Bentley automobile," said the U.S. Attorney's Office.

Mokbel and ElSafty could face 10 years in prison and up to a $250,000 fine. They may also receive an additional penalty of 10 years for using telemarketing to target people over 55 as a means to commit healthcare fraud.


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