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Dallas Men Marketing Compounded Pain Creams Busted for Healthcare Fraud

Owners of a Dallas marketing and research company are accused of defrauding TRICARE, the military healthcare system, out of millions of dollars for compounded products made by pharmacies.

Richard Cesario and John Cooper are the owners of CMGRx LLC. The company marketed compounded pain and scar creams to current and former U.S. military members and their families on behalf of various compounding pharmacies. The two men were arrested last week in connection with an extensive healthcare kickback scheme. The scheme cost taxpayers $65 million according to federal authorities.

Cesario and Cooper are accused of paying kickbacks to physicians for compounded prescriptions they wrote. The recently unsealed indictment names a handful of pharmacies that paid kickbacks to Cesario and Cooper for patient referrals. Authorities say the duo is also accused of paying kickbacks to TRICARE beneficiaries through an elaborate scheme involving a phony medical study and fake grant payments.

This indictment is the first in North Texas resulting from the federal government’s large-scale criminal investigation into compounding pharmacies and their marketing practices that have received TRICARE money.

TRICARE provides health care coverage for active-duty and retired members of the military and their families. Read more about Richard Cesario and John Cooper in the Dallas Morning News.

We Can Help You Report Compounding Pharmacy Fraud
While Waters Kraus & Paul is not handling this particular compounding pharmacy fraud case, we are representing whistleblowers in similar False Claims Act lawsuits. If you have comparable claims against a different medical marketing company or pharmacy that is defrauding the government, email us or call our qui tam attorneys at 800.226.9880. We can guide you through the reporting process and make sure you file with the proper government department.

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