A pharmaceutical salesman from Clarence who admitted to a $5.8 million health care fraud scheme is scheduled to be sentenced May 1.
Scott Trapp, 50, pleaded guilty in federal court in Buffalo last week to conspiracy to commit health care fraud in which compounded medications were fraudulently filled, according to the U.S. Attorney's Office for the Western District of New York.
Trapp, who began marketing compounded medications in 2014, had prescriptions tailored to contain ingredients that carried high reimbursement rates from health insurers, federal prosecutors said in a news release.
Compounded drugs, which contain ingredients that are tailored to the specific needs of a patient, are typically marketed to doctors. Instead, Trapp and his associates – who were not named in the news release – identified patients with health insurance that covered the medications and convinced them to agree to receive the drugs, authorities said.
According to prosecutors, Trapp asked a friend who was a doctor – who also was not named – to write blank, 12-month prescriptions in Trapp's and his wife's name. Trapp then duplicated the prescriptions, substituting names of other patients.
Trapp received a commission of about 20 percent of the reimbursement rate for the prescriptions he marketed that were approved and filled. He also received a commission of about 5 percent for those marketed and filled by those he supervised, as well as those working for people he supervised, authorities said.
Trapp defrauded health care benefit programs provided by Blue Cross Blue Shield, the Verizon Medical Expense Plan for New York and New England Associates, National Grid USA and Sunovion Pharma between 2014 and December 2016 that resulted in losses of more than $5.8 million, according to prosecutors.