Med-Fast Pharmacy probe yields criminal charges

Settlement resolves pair of lawsuits

A former top manager of Aliquippa-based Med-Fast Pharmacy has been charged with conspiracy in a scheme to re-use medications left over from nursing homes by repackaging the drugs for resale to other nursing homes.

The charge against Gino Cordisco, 47, of Mars, the former vice president of store operations for Med-Fast, was announced Wednesday by the U.S. Attorney’s office as part of a settlement with the company that resolves long-standing criminal and civil charges alleging health care fraud.

Also charged with Mr. Cordisco was Iserve Technologies, a company that operated out of Med-Fast’s operation on Sheffield Avenue that served as a collection point for unused medications to be repackaged with drug stocks on hand at MedFast’s facility there.

The agreement with federal prosecutors also includes a nearly $2.7 million settlement with Med-Fast, owner Douglas Kaleugher and various Med-Fast entities to resolve two whistleblower lawsuits brought in U.S. District Court in 2013 under the False Claims Act.

In addition, the settlement resolves allegations pertaining to Med-Fast’s billing of Medicare and Medicaid for reimbursement for the retail version of diabetes testing strips when the company actually supplied patients with cheaper mail-order versions of the strips.

The charges against Mr. Cordisco and Iserve follow a related charge filed in 2015 against Correnna Pfeiffer, the former manager of a Med-Fast Institutional Pharmacy in Aliquippa.

Ms. Pfeiffer waived indictment at that time, typically an indication of cooperation in an investigation, and pleaded to conspiracy.

As manager from 2009 to 2013, she had been in charge of employees who prepared prescription drugs for residents of nursing homes.

Med-Fast drivers picked up the unused medications from the nursing homes and deliveredthem to the pharmacy operation on Sheffield, where employees removed them from the packages and returned them to stock to be reusedin other prescriptions.

The result was that drugs from different makers and with different expiration dates were mixed in with other medications in stock bottles.

The employees were then told to use fake labels and send the medications out for resale to other nursing homes, according to agents with the U.S. Drug Enforcement Administration and the U.S. Food and Drug Administration.

Ms. Pfeiffer’s plea deal with the U.S. Attorney’s office also indicated that Medicare and Medicaid were not reimbursed for the unused drugs but billed for the misbranded medications.

Ms. Pfeiffer is awaiting sentencing in federal court. Mr. Cordisco had not yet obtained an attorney and could not be reached for comment.

But in a statement, MedFast said it learned of the mislabeling issues with medications several years ago and said the people responsible are no longer with the company. Med-Fast also said its medical partners have chosen to maintain their relationshipswith the company.

“Med-fast looks forward to putting this matter behind us and the continued service of our customers,” said Elisabeth Mistretta, company spokeswoman.