DELRAY BEACH — The owner of a South Florida “medical marketing” company is facing a new round of charges in an investigation into the submission of hundreds of high-priced mail-order prescriptions, many of them fraudulent, to a single pharmacy.
Delray Beach police and the Palm Beach County Sober Home Task Force last week arrested Allan Jarboe on six counts of soliciting or receiving patient-brokering kickbacks from Express Care Pharmacy, a St. Louis mail-order company that is at the core of the investigation.
Between October 2017 and April 2018, Jarboe brokered 132 patients to Express Care and received a total of $197,519.83 in kickbacks in 32 separate payments, according to his arrest report.
More: Boynton Beach murder suspect extradited to Palm Beach County from Maryland
Express Care gave Jarboe 65% of the payments it received from insurance companies toward the cost of high-priced medications for eczema, psoriasis, acid reflux and other ailments, the report said.
Jarboe kept 15% of the money and distributed the remaining 50% among a group of “marketers” who recruited the patients in whose names the prescriptions were filed. Jarboe also kept the co-payments made for the prescriptions, authorities allege.
Investigators found that some of the prescriptions were “fraudulent, forged, unnecessary, and that marketers had submitted them without the patients’ knowledge just to get paid the illegal kickbacks from Express Care,” according to the report.
More: Delray Beach police ID man, 23, killed in drive-by shooting Friday; gunman sought
Last week’s arrest is the second for Jarboe, 43, during the investigation. Authorities first had arrested him in August 2019 on other charges of patient brokering and money laundering. He has pleaded not guilty.
Jarboe left the Palm Beach County Jail early Saturday after a judge had set his bail at $90,000 Thursday. A message left Monday at a telephone number listed for him was not returned. A call placed to an attorney listed in court files as representing Jarboe also was not returned.
Under Florida law, it is illegal for a lab or a health-care provider either to offer or to pay a commission, a bonus or a bribe for the referral of patients.
Typically, patient-brokering has involved steering patients who have private health insurance to drug-treatment centers and urine-testing labs.
The person who does the steering – often a person affiliated with a sober home – gets paid kickbacks from the thousands of dollars in insurance reimbursements the centers and labs receive for the person’s drug tests. Those reimbursements can total as much as $5,000 per week for a single patient.
More: Riviera Beach police: West Palm Beach man fatally shot estranged wife’s boyfriend in June
Pharmacies are emerging as a new place to “broker” patients, authorities say. Palm Beach County saw its first case in December 2018, and State Attorney Dave Aronberg said at that time that the Sober Home Task Force would “continue to adapt and fight evolving abuses in the drug-treatment industry.”
Authorities allege Jarboe directed “marketers” affiliated with his company, SHN Telemed, to submit fraudulent mail-order prescription orders to Express Care. The pharmacy received the prescription orders on preprinted forms for a variety of lotions and pills.
Jarboe’s earlier arrest came after Jessica Silva, who co-owned Express Care with her father, told investigators that between August and September of 2017, she paid him kickbacks in exchange for patient referrals. Jarboe and Silva were among five people charged at that time.
Through additional interviews with Silva, investigators learned that Jarboe also received the additional 32 kickback payments.
More: Rally calls for end to gun violence, helping police solve Riviera Beach homicides
In setting Jarboe’s bail Thursday, a judge ordered that he not work in the health-care industry, have no contact with witnesses and surrender his passport. A new court date was set for Jan. 28 before Circuit Judge Jeffrey Gillen.
Silva is scheduled to be arraigned in her own patient-brokering case Feb. 1.
This article originally appeared on Palm Beach Post: Authorities: ‘Medical marketing’ company pocketed $132,000 in prescription-drug kickback scam