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Pharmacy owner pleads guilty to $3.5M in Medicaid fraud

August 31, 2012

A West Lafayette pharmacy owner was sentenced to four years and 9 months in federal prison for defrauding the state’s Medicaid program. He was also ordered to repay Medicaid and pay taxes owed.

Rossville resident Chad Shedron, 36, was sentenced by Chief Judge Philip Simon after pleading guilty to an information charging him with the felony offenses of executing a scheme to defraud the Indiana Medicaid health benefit program and evading federal income tax, according to a statement Thursday from the office of David Capp, U.S. attorney for the Northern District of Indiana.

The case is a result of an investigation that included an FBI-led raid in November of Shedron’s pharmacy, Family PharmaCare in the University Square Mall.
 
According to his plea, Shedron agreed to a money judgment in the amount of $3,521,961.22 – the amount of proceeds derived from the health care fraud.  He also agreed that the tax loss for 2007 was about $189,009, and further agreed that he is responsible for tax losses of $164,728 for 2008, $141,623 in 2009 and $32,310 in 2010, according to the statement.  

Shedron agreed to forfeit his home, $65,000 in cash, a brokerage account, jewelry and a baseball card collection with an estimated value of more than $200,000, according to Capp’s office.

Shedron will also serve one year of supervised release.

 

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