PHILADELPHIA — The U.S. Attorney’s Office announced the conclusion of a significant investigation into opioid distribution and healthcare fraud at Spivack, Inc., formerly known as Verree Pharmacy in Philadelphia. This years-long investigation has resulted in criminal convictions and civil settlements involving the pharmacy’s owner, Mitchell Spivack, and two former employees, Todd Goodman and Eric Pestrack.
Goodman and Pestrack pled guilty to charges related to the illegal dispensation of oxycodone without valid prescriptions, receiving sentences of four and three months in prison, respectively. They also settled civil allegations for their roles in a scheme involving the illicit dispensing of opioids and other controlled substances, in addition to committing health care fraud by billing for undispensed drugs. Both have agreed to never again dispense controlled substances.
Mitchell Spivack, the owner and pharmacist, previously pled guilty and was sentenced to 42 months in prison for conspiring in health care fraud and the illegal distribution of oxycodone. He also settled civil allegations, resulting in over $4.1 million in payments to resolve liabilities under various acts and a permanent ban on dispensing controlled substances. Furthermore, a 22-year exclusion from Medicare and Medicaid was imposed on Spivack and his pharmacy.
The federal-state investigation revealed that Verree Pharmacy, once the top purchaser of oxycodone in Pennsylvania, dispensed medications irresponsibly, ignoring red flags indicative of drug diversion. The complaint also highlighted a healthcare fraud scheme involving Verree and its employees billing for medications not dispensed, a practice internally referred to as “Bill But Don’t Fill.”
U.S. Attorney Jacqueline C. Romero emphasized the devastating impact of illegal opioid dispensing and healthcare fraud on communities and federal health care programs. This case was pursued in partnership with various agencies, including the DEA, HHS-OIG, and the Pennsylvania Attorney General’s Office, reflecting a collective effort to combat abuses within the healthcare system and the opioid crisis.