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Mars man faces federal charge

He's linked to case involving Med-Fast

PITTSBURGH — A Mars man caught up in allegations that a Beaver County-based pharmacy chain intentionally mislabeled and reused old medications from nursing homes is facing a federal conspiracy charge.

Gino Cordisco, 47, of Mars faces the single charge after federal prosecutors announced Wednesday a settlement between the government and Med-Fast Pharmacy, over allegations that the company defrauded Medicare and Pennsylvania Medicaid.

Federal prosecutors in Pittsburgh said Wednesday that multiple individuals and entities associated with Med-Fast Pharmacy had agreed to resolve both criminal and civil charges in the case, which began in 2015 when a pharmacy manager with the company was charged with conspiracy.

The settlement announced Wednesday includes an agreement in which Med-Fast, its owner Douglas Kaleugher, who is a Cranberry Township resident, and related entities agreed to pay more than $2.6 million to the federal government to settle allegations that the company violated the False Claims Act by submitting false reimbursement claims to Medicare and Pennsylvania Medicaid.

The settlement with Med-Fast and the charge against Cordisco come days after Correna Pfeiffer, 37, of Monaca, a former pharmacy manager with Med-Fast, pleaded guilty to a single conspiracy charge in federal court on Oct. 2.

In her plea, Pfeiffer told investigators that Med-Fast had its delivery drivers pick up unused medications from nursing homes and return them to the pharmacy, where employees would unpackage them and mix them in with medications they had in stock. As a result, drugs from different manufacturers and with different expiration dates were mixed together, and employees were told to falsely label the drugs “misbranded,” as well as use fake lot numbers and expiration dates on individual prescriptions before sending the medications back out to nursing homes across southwestern Pennsylvania.

A Department of Justice spokeswoman said that “all types of prescription medications” were involved in the scheme. No patients were injured or died, she said.

The criminal investigations grew out of a pair of whistle-blower lawsuits filed by two other employees in 2013. The government intervened in the lawsuits because they involved federal drug labeling and Medicare billing regulations.

As part of the whistle-blower settlements Med-Fast admitted no liability, prosecutors said. The conspiracy charge against Cordisco carries a maximum sentence of five years in prison, a fine of $250,000, or both.

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