East Tennessee, (WOKI / WVLT) -Three East Tennessee residents have been sentenced to federal prison for their roles in a large-scale prescription fraud scheme that cost healthcare programs millions.
The U.S. Department of Justice says 75-year-old Barbara Smith of Powell was sentenced to 37 months in prison and ordered to pay more than $4.8 million in restitution. Co-defendants Jared Grant Riddle of Clinton and Brian Woods of Dandridge were each sentenced to 33 months and ordered to pay millions in restitution as well.
According to court documents, the scheme operated from 2018 through 2020 through pharmacies tied to United Apothecary, doing business as Riddle Drugs. Prosecutors say Riddle created high-reimbursement drug lists, which Woods marketed to clinics.
Smith, who worked as an office manager at a Knox County-area clinic, was paid to provide signed prescription forms. Authorities say those forms were later altered or completely forged to include medications and refills that were never prescribed.
Those fraudulent claims resulted in payments of more than $7 million from insurers, including roughly $4.8 million from Medicare Part D.
All three defendants pleaded guilty to conspiracy to commit healthcare fraud.
