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Former pharmacy CEO from Palm Beach Gardens sentenced to 6 months in prison

Patrick Smith pleaded guilty to lying to federal agents
Department of Justice
Posted at 9:32 PM, Feb 27, 2024
and last updated 2024-02-28 10:25:05-05

PALM BEACH GARDENS, Fla. — A former pharmacy CEO from Palm Beach Gardens was sentenced to six months in prison after he pleaded guilty to lying to federal agents.

On July 21, Patrick Smith, 71, the former CEO of Patient Care America, a compounding pharmacy in Broward County, pleaded guilty to one count of lying to federal agents who were investigating PCA for various health care fraud offenses.

On Friday in Miami, U.S. District Judge Roy K. Altman sentenced Smith, who faced up to five years in federal prison. Altman also ordered supervised release for two years.

Department of Justice generic

Palm Beach Gardens

Palm Beach Gardens man pleads guilty to lying to federal investigators

Scott Sutton
9:20 PM, Jul 21, 2023

According to court records, Smith admitted that in March 2020 he voluntarily met with agents who were investigating PCA on allegations of health care fraud and payment of illegal kickbacks.

The agents were with the Defense Criminal Investigative Service, which is part of the Office of Inspector General, U.S. Department of Defense.

During that interview, prosecutors said Smith lied to agents about his role in hiring the marketing groups who were paid by PCA to recruit Tricare patients.

The Department of Justice said Smith claimed that he played no role in vetting the marketing groups. However, investigators said documents and witness testimony established that he frequently met with the marketing groups and decided which to hire and on what terms.

Prosecutors said PCA paid more than $40 million in kickbacks to the marketers. To date, a dozen of PCA's marketers have been convicted and sentenced to prison terms of up to 13 years for their roles in the scheme.