PA Attorney General Dave Sunday Says Two Leaders Of $12 Million Medicaid Fraud Scheme Sentenced to State Prison




by Alex Lloyd Gross and Dan Doyle — May 31, 2025

Pennsylvania Attorney General Dave Sunday announced this week that two Philadelphia men who spearheaded a $12 million scheme at Broad Street Pharmacy have pleaded guilty and received state prison sentences.

Peter Dello Buono, 70, who managed the daily operations of Broad Street Pharmacy in South Philadelphia, was sentenced to 2 to 5 years in state prison. His co-conspirator, Frank Bengermino, 70, who served as the in-store pharmacist, was sentenced to 1½ to 5 years. Both men are prohibited from owning, operating, or working in any pharmacy and are excluded from participating in Medicaid and Medicare programs.

The fraud scheme, which spanned several years, involved billing Medicaid and Medicare for expensive medications — including the antipsychotic Latuda and high-reimbursement HIV medications — that were never actually dispensed to patients. Investigators estimated that these medications accounted for about 86 percent of the pharmacy’s billings to Medicaid over a five-year period.

“This was a years-long conspiracy that defrauded state and federal programs designed to help people and families in need, and ripped off taxpayers who fund those programs,” said Attorney General Sunday in a statement. “This criminal enterprise prioritized personal greed over the wellbeing of Pennsylvanians.”

The Pennsylvania Office of Attorney General Medicaid Fraud Control Section, working with the U.S. Department of Health and Human Services Office of Inspector General, conducted a thorough investigation that led to the charges. The Fiftieth Statewide Investigating Grand Jury issued a presentment for the charges last year.

In total, nine individuals were charged in the scheme, with seven pleading guilty this week. Among them is Elizabeth Thompson, 70, the owner of Broad Street Pharmacy and Dello Buono’s wife, who was sentenced to four years of probation and must also comply with the same restrictions as her husband. Dello Buono and Thompson were ordered to pay $12.25 million in restitution.

The conspiracy also involved paying kickbacks to consumers who sold back their pills in exchange for cash and other medications.

Additional defendants who have pleaded guilty include Berry Davis, 59; Christian Bengermino, 36, of Folsom; and Evan Gusz, 54, of Glenside. Charges against Brian O’Hara, 52, and Michael McCue, 68, both of Philadelphia, are still pending.

The Broad Street Family Pharmacy ceased operations after agents executed a search warrant at the location back in 2021.

The cases are being prosecuted by Assistant Chief Deputy Attorney General Mark Levenberg. The Pennsylvania Medicaid Fraud Control Unit, which led the investigation, receives the bulk of its funding from the U.S. Department of Health and Human Services.

“These prison sentences send a strong message that Medicaid fraud will not be tolerated and that those who exploit these vital programs will be held accountable,” said Attorney General Sunday.