A judge in Southern California dismissed allegations of fraud in an alleged $ 100 million compound cream scam at Landmark Medical Management, which prescribed products to injured workers in an alleged kickback program.
Documents from the Orange County Superior Court’s website show that the charges against Kareem Ahmed, chiropractor Andrew Robert Jarminski and pharmacist Michael Rudolph were dismissed after a preliminary hearing on Monday. The case document does not contain any further information.
The Orange County District Attorney’s Office filed the charges in May 2016 after an appellate court earlier that year dismissed all charges except one in the original case against Mr. Ahmed and said that the prosecutors accused more than the grand jury claimed.
The allegations in the amended complaint were similar to those in the 2014 indictment.
Prosecutors claimed that Ahmed formulated compound creams based on the profitability of their ingredients rather than the patient’s medical needs. They said he charged carriers up to 50 times more than he paid for medicines and that he paid returns to doctors for each compound cream they prescribed to injured workers.
The amended complaint alleges that Rudolph, who owns Tustin Community Pharmacy, has entered into an agreement with Mr Ahmed to manufacture and distribute compound creams to injured workers. The complaint alleges that Rudolph received more than $ 1 million for manufacturing and distributing drugs to injured workers.
Jarminski is said to have received more than $ 1.9 million from 2010 to 2013 for prescribing two compound creams to each work patient, regardless of medical necessity.
The complaint also accused all three of involuntary manslaughter for the death of Andrew Gallego on February 3, 2012, an infant who died after ingesting painkillers allegedly sent to his mother to treat a work-related knee injury.