A Calabasas physician was sentenced to 14 months in federal prison Friday, Oct. 15 after prosecutors said he accepted nearly $800,000 in bribes and kickbacks as part of a conspiracy that unlawfully billed health insurers for compounded medication prescriptions.
Compounded drugs can be prescribed if a patient is allergic to a specific ingredient in an FDA-approved medication. A compounded drug would be altered, combined, or mixed to meet the specific patient’s needs.
Dr. Amir Friedman, 56, along with 26 individuals in Southern California spanning from Pacific Palisades to Dana Point, were charged in September 2019 for their alleged involvement in a Medicare and Medicaid fraud scheme resulting in $257 million in billings.
Prosecutors said that from August 2013 to May 2015, Friedman conspired with New Age Pharmaceuticals Inc., a Beverly Hills-based company, and an unnamed marketer to violate the law.
Friedman used pre-printed prescription pads for compounded drugs provided to him by the marketer and received a kickback after the prescriptions were written, prosecutors said. New Age Pharmaceuticals dispensed the compounded drugs, billed insurance companies for reimbursement and shipped the medication to patients.
Friedman, a licensed anesthesiologist, pleaded guilty in October 2019 to one count of conspiracy to commit mail and wire fraud, and to violate a federal law that – among other things – forbids the use of the U.S. mail for the purpose of aiding bribery, according to court documents. He admitted in his plea agreement that he was aware the compounded drugs he prescribed are far more expensive than FDA-approved equivalents, according to court documents.
Hootan Melamed, a licensed pharmacist and owner of New Age Pharmaceuticals, was prosecuted by U.S. Attorney’s Office in San Diego in 2016. He pleaded guilty in November 2020 to one count of conspiracy to commit health care fraud and was sentenced to six months in federal prison, said Ciaran McEnvoy, a spokesperson for the U.S. Attorney’s Office for the Central District of California.
Friedman’s state of California medical license is currently active, but the Medical Board of California has provided a formal, public charge alleging a physician had violated the Medical Practice Act.
