Multiple People Charged In South Philly Pharmacy Scam
HARRISBURG — Attorney General Michelle Henry announced charges against nine individuals regarding a $20 million Medicaid and Medicare fraud scheme stemming from a South Philadelphia neighborhood pharmacy.
Elizabeth Thompson, the registered owner of Broad Street Family Pharmacy, and her husband, Peter Dello Buono — who oversaw daily operations along with pharmacist Frank Bengermino — are charged with engineering the scheme, from 2016 to 2021, which involved fraudulent claims to the federal benefits programs for expensive medications. In reality, the pharmacy allegedly filled very few of the prescriptions and instead paid their customers cash in exchange for bringing their prescriptions to the pharmacy.
The conspiracy also involved paying kickbacks to consumers selling back pills to the pharmacy in exchange for cash and other medications.
The total amount of fraudulent claims — primarily for the antipsychotic, Latuda, and high-reimbursement HIV medications — exceeded $20 million.
“The owner and operator of this pharmacy were essentially pretending to fill prescriptions for expensive medications, while defrauding the Medicaid and Medicare programs of millions of dollars with a sophisticated scheme involving nearly a dozen co-conspirators,” Attorney General Henry said. “The alleged crimes involved here diverted funding from Pennsylvanians in need into the pockets of the defendants.”
The Fiftieth Statewide Investigating Grand Jury issued a presentment for the charges following a joint investigation conducted by the Pennsylvania Office of Attorney General Medicaid Fraud Control Section and the U.S. Department of Health and Human Services Office of Inspector General.
Charged are: Peter Dello Buono, 70; Elizabeth Thompson, 70; Frank Bengermino, 70; Berry Davis, 59; Brian O’Hara, 52; Michael McCue, 68 — all of Philadelphia; Christian Bengermino, 36, of Folsom; and Evan Gusz, 54, of Glenside, with Medicaid fraud, dealing in unlawful proceeds, theft by deception, conspiracy, and other offenses. Angelo Amorosi, 62, of Philadelphia, is charged with dealing in unlawful proceeds and conspiracy.
Some defendants are also charged with violations of the Controlled Substance, Drug, Device, and Cosmetic Act and violations of the Pharmacy Act.
Broad Street Family Pharmacy was licensed to provide services to Medicaid and Medicare consumers. While Thompson owned the pharmacy, her husband (Dello Buono) operated it, even though his pharmacist license was previously suspended and he was not allowed to be a provider under the Medicaid and Medicare benefit programs. To circumvent this, Frank Bengermino, who possessed a valid pharmacist license, was the managing pharmacist at the pharmacy.
The scheme was based on billing expensive medications to Medicaid and Medicare, even though very little of the medications were actually acquired and disbursed at the pharmacy. The scheme also involved consumers (with prescriptions for the high-reimbursement medications) being paid illegal kickbacks — in cash, primarily, but also with medications — to sell back their prescriptions to the pharmacy. The pharmacy ceased operations and closed its doors shortly after agents executed a search warrant at the location in the autumn of 2021.
Investigators estimate that the involved medications – Latuda and HIV medications – accounted for approximately 86 percent of the Broad Street Family Pharmacy’s billings to Medicaid over the five-year period.
These cases are being prosecuted by Assistant Chief Deputy Attorney General Mark Levenberg. The defendants are presumed to be innocent unless and until proven guilty.