3 Shelby County residents charged in $28.7M health care fraud case
Three West Tennessee residents accused of fraudulently billing the federal government $28.7 million for invalid prescription medication they never dispensed were part of a nationwide health care fraud crackdown announced Monday.
The owners of a Memphis-based health clinic MedPartners and SarJo Pharmacy purported to treat injured United States Postal Service employees, billing the cost of medications to the Federal Employees' Compensation Act (FECA), according to an indictment filed June 12.
But the medication was never prescribed to patients, and the majority of the medications were not carried in stock by the pharmacy. About 500 of the 4,052 claims billed by SarJo Pharmacy between August 2018 and August 2021 were for drugs that were never actually manufactured or available to be purchased, the indictment states.
Collierville residents Kossie Lamon Simmons, 59, and Katina Marzie Simmons, 48, face charges of health care fraud and conspiracy to commit health care fraud and wire fraud, alongside 47-year-old Memphis resident Tritia Margalizita Townsend, who served as SarJo Pharmacy's pharmacist in charge.
Between August 2018 and December 2021, FECA paid the pharmacy about $16.3 million.
'Kossie, Katina and Townsend personally profited from their participation in the scheme by receiving fraud proceeds for the personal use and benefit of themselves and others,' the indictment states.
The trio are among 324 defendants facing charges as part of the U.S. Department of Justice's 2025 National Health Care Fraud Takedown, according to Interim U.S. Attorney Joseph C. Murphy, Jr. The operation targeted those with alleged involvement in health care fraud and illegal drug diversion schemes throughout the United States.
Kossie Simmons controlled and managed MedPartners, a health clinic founded in 2016 with locations in Memphis, Nashville, and Little Rock, Arkansas, according to the indictment filed in U.S. District Court for the Western District of Tennessee. Kossie Simmons also controlled and managed SarJo Pharmacy, which was founded in 2018 and had one location in Memphis.
Katina Simmons managed and held 70% ownership interest in both companies.
The indictment mentions an unnamed co-conspirator that held 30% ownership interest in both companies. Kossie Simmons, who previously pleaded guilty to health care fraud in 2007 and was barred from participating in any federal health care program for 25 years, exchanged text messages with the co-conspirator in August 2016.
'Been patiently waiting for the planets to come back into alignment from my first go round, now can attack this opportunity with the most valuable weapon of all EXPERIENCE,' Kossie Simmons wrote in one text message, according to the indictment.
Katina Simmons enrolled MedPartners as a billing agent for the FECA program in August 2016, and enrolled the clinic as a physician office in the program in 2017, though Kossie Simmons was specifically barred from participating in a federal health care program.
SarJo Pharmacy opened in 2018 with Townsend as the only employed pharmacist. Townsend worked one day each week for four hours filling prescriptions for lidocaine and diclofenac, an anti-inflammatory medicine used to treat pain, the indictment states.
The Tennessee Board of Pharmacy began investigating the business in September 2020 and discovered the pharmacy was billing for prescription medications without valid prescription orders. Instead, two nurse practitioners who worked in MedPartners' clinics would determine whether patients were eligible for compounded medications, or medicines created using drug ingredients 'tailored to the needs of an individual patient,' according to the indictment.
Two other physicians who worked with MedPartners never authorized prescriptions for the medications billed, and the nurse practitioners did not have access to prescription pads, according to court documents.
Investigators executed search warrants on the businesses in August 2021. The businesses submitted 227 more claims between the searches and the end of that year, bringing in another $1.1 million in payments.
Kossie and Katina Simmons each face one count of conspiracy to commit wire fraud and health care fraud, which carries penalties of up to 20 years in prison and a fine of up to $250,000, if convicted. They also face seven counts of health care fraud, which carry penalties of up to 10 years in prison and a maximum fine of $250,000, if convicted.
Townsend faces one count of conspiracy to commit wire fraud and health care fraud and three counts of health care fraud.
U.S. v. Kossie Lamon Simmons, et al
SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Washington Post
25 minutes ago
- Washington Post
Dodgers' Max Muncy injured while tagging out Michael A. Taylor of White Sox
LOS ANGELES — Los Angeles Dodgers third baseman Max Muncy was injured while tagging out Michael A. Taylor in the sixth inning against the Chicago White Sox on Wednesday night. Taylor was caught stealing as catcher Will Smith threw to Muncy, who tagged Taylor for the second out of the inning.
CNN
27 minutes ago
- CNN
Here is the new evidence we learned about during Bryan Kohberger's court hearing
After two and a half years of desperately searching for answers in the deaths of four Idaho college students, the case reached a bitter resolution as Bryan Kohberger admitted guilt for the first time. Kohberger, seated behind a table in an off-white button-up shirt and patterned tie, responded to questions from Judge Steven Hippler with a series of simple yeses and a neutral gaze, admitting in one-word answers Wednesday that he planned and carried out the brutal stabbings of Kaylee Goncalves, Madison Mogen, Xana Kernodle and Ethan Chapin at their off-campus Moscow, Idaho, home in November 2022. While Kohberger himself didn't give a direct account of what happened, Wednesday marked a pivotal moment as a case shrouded in secrecy from gag orders and sealed filings momentarily shared a wider picture with the victims' families and the public who have been begging for answers. Latah County Prosecutor Bill Thompson, who has led the case since the early winter days of Kohberger being charged, gave a play-by-play of the evidence prosecutors intended to present at trial, painting the most detailed look at a case that has only been revealed through broad strokes pieced together from court documents. The new evidence shared during Wednesday's hearing included a car rushing away from the scene, new insight into how Kohberger encountered a roommate, and a used Q-Tip abandoned in the trash linking Kohberger to the crime. While the image of what happened in the early morning hours of November 13, 2022, is now sharper, many details are still left out of focus, and it's unclear whether we will ever have full clarity of why those horrific acts occurred. Here is what Thompson shared during his office's account of events. In July 2022, four months before the murders, Kohberger's cell phone began pinging a cell tower near 1122 King Road, the victims' home, Thompson said. From July 9 to the time of the murders, Kohberger's phone connected to the area approximately 23 times between 10:00 p.m. and 4:00 a.m., he said. While Kohberger was in the area, prosecutors have no evidence that shows he had direct contact with the King Road home or its occupants, Thompson said. Prosecutors didn't share insight into why he was in the area or how he ended up coming upon the residence. He also noted that while his phone connected to a nearby cell tower, the area is densely populated and includes a lot of homes. In the early morning hours of November 13, 2022, Thompson said, Kohberger left his home in Pullman, Washington, to drive the 10 miles to Moscow and turned off his cell phone from 2:54 a.m. to 4:48 a.m. While there were no cell phone tower pings during at this time because his phone was off, compiled video surveillance showed Kohberger's car entering Moscow, driving around the neighborhood, including to the end of the dead-end road where the roommates' house was located, Thompson said. Kohberger ultimately parked his car behind the residence, he said. Previously released court documents said Kohberger entered the home through a sliding glass door and made his way to the third floor, where he fatally stabbed Mogen and Goncalves, but new details were shared Wednesday about his exit from the house. The evidence shows Kohberger 'encountered' Kernodle in the hallway and 'ended up killing her,' Thompson said, implying that he may not have originally intended to do so. Chapin, who was asleep in Kernodle's bedroom, was also fatally stabbed by Kohberger, the prosecutor said, without sharing details on how or why Chapin was targeted. This realization is especially haunting given that Dylan Mortensen, one of the surviving roommates who was awake at the time of the murders, saw someone in a black mask walk through the house. No explanation was given by prosecutors on why she was not targeted. While prosecutors believe Kohberger went to the home with the intent to kill, 'We will not represent that he intended to commit all the murders, but that is what happened,' Thompson said. At 4:20 a.m. that morning, a car identified as Kohberger's was seen leaving the area 'at a high rate of speed' on nearby cameras, and 'almost loses control' around a corner, Thompson said. Prosecutors believe Kohberger then took a series of back roads to return to Pullman, as no video of his car was seen from nearby highway cameras that morning. Cameras show him enter Pullman from the south around 5:26 a.m. and arriving at his apartment several minutes later, Thompson said. Prosecutors previously said in court filings and during hearings that a single source of male DNA was discovered on the sheath of a Ka-bar knife, the weapon believed to have been used in the stabbings, found near two of the victims. The murder weapon hasn't been found, Thompson said Wednesday. Investigators ultimately narrowed in on Kohberger and tested trash at his parents' Pennsylvania home, where a Q-Tip was found containing DNA matching his father, Thompson said. Investigators later tested Kohberger's DNA and found it to be a match to the DNA on the sheath, he added. A search of Kohberger's Pullman residence six to eight weeks after the murders found it to be nearly empty, with Thompson saying there was 'virtually nothing there.' His car, which was seized, had also 'been meticulously cleaned inside,' he said. Even parts of the car that are often dirty from use, like side door compartments, were spotless, Thompson added, calling the intensive cleaning part of Kohberger's plan. Wednesday's hearing left one giant hole in the story: why Kohberger targeted the residents of the King Road house. And it's unclear if the public will ever get an answer, as it's not required by the plea deal. The plea agreement and the written factual basis, filed Wednesday following the hearing, offer little insight into why Kohberger committed the appalling crimes he admitted to. The victims' families, in particular, are left without answers, leaving them to wonder why this happened to their loved ones as they began their adult lives. There is also no stipulation in Kohberger's plea agreement to prevent him from doing interviews with media or writing a book. A trove of documents and discovery that could shine more light on the case remain sealed by the court and is expected to stay that way until after the sentencing on July 23. But it's unclear how the court will handle the large volume of material. Steve Goncalves, Kaylee's father, spoke after the hearing about his disappointment, saying 'It was terrible. We let her down, they let my daughter down.'
Washington Post
32 minutes ago
- Washington Post
Seven missing after massive explosion at California fireworks warehouse
A warehouse storing fireworks in Northern California exploded on Tuesday, leaving seven people missing as of Wednesday evening, officials said. Dramatic video footage captured by KCRA 3 News, a Sacramento broadcaster, showed smoke pouring from the building's roof before a massive explosion created a fireball that seemed to engulf much of the warehouse, accompanied by an echoing boom. Hundreds of fireworks appeared to be going off and were sparkling within the smoke. Photos of the aftermath showed multiple destroyed buildings and a large area covered in gray ash.
