LITTLE ROCK—A Florida man pleaded guilty to misleading federal agents investigating his promotion of expensive compounded prescription drugs. Steve Hill, 57, of Port Orange, Florida (formerly of Memphis), entered his plea to making false statements to the FBI today before United States District Judge Brian S. Miller.
A veteran of the medical sales industry based in Memphis, in 2014 Hill began to promote compounded prescription drugs covered by TRICARE. His compensation equaled a fixed percentage of sales generated. When a healthcare provider to whom Hill marketed the drugs went on to prescribe them, Hill earned a share of whatever the insurer reimbursed for the drugs.
Among the healthcare providers Hill solicited was Doctor 1. Unbeknownst to TRICARE, Hill shared his commission on Doctor 1’s prescriptions with Doctor 1’s wife, Spouse 1. Specifically, of the more than $500,000 in commission he earned from Doctor 1’s prescriptions, Hill paid $147,325.25 to Spouse 1 and kept the remaining $345,727.15 for himself.
Around 2016, federal agents began to investigate Hill’s promotion of compounded drugs as well as his financial relationship with Spouse 1. In August 2017, a Special Agent of the FBI travelled to Hill’s Tennessee home to speak with him directly. During that interview, Hill denied having paid Spouse 1, which he knew to be false.
Under the terms of his guilty plea, Hill agreed to forfeit $345,727.15 in illicit proceeds. He will be sentenced at a later date. Making a false statement to the FBI is punishable by up to five years’ imprisonment.
Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, James A. Dawson, Special Agent in Charge of the FBI Little Rock Field Office, and Miranda Bennett, Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services announced the guilty plea.
The investigation was conducted by the FBI and HHS-OIG. The case is being prosecuted by Assistant United States Attorney Alexander D. Morgan.
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