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Dallas, Texas News

Dallas Pharmacy Owner Sentenced to 10 Years for $46 Million Healthcare Fraud Scheme

Ivor Jallah, a 37-year-old pharmacy owner from Dallas, was sentenced Tuesday to 10 years in federal prison for his role in a massive healthcare fraud scheme. U.S. Attorney for the Northern District of Texas, Leigha Simonton, announced the sentencing after Jallah pleaded guilty to conspiracy to commit healthcare fraud in June 2024.

Jallah, who operated multiple pharmacies including Preferred RX, EZ Pharmacy, Avenue H Pharmacy, and Wallis Pharmacy, was ordered by U.S. District Judge Sam A. Lindsay to pay $41,494,313.97 in restitution. His co-conspirator, Shannon Turley, 46, pleaded guilty in November 2023 to the same charge and is scheduled for sentencing in November.

According to court documents, Jallah and Turley conspired to bill insurance companies for headache sprays, pain creams, and scar creams that were never dispensed to patients. They paid individuals, referred to as "marketers," for access to insured patients’ personal information, sometimes with the patients' knowledge and sometimes without.

To facilitate the fraud, they directed employees to input patient information onto pre-populated prescription pads and, in some instances, paid physicians to stamp prescriptions without having seen the patients. Over time, the pharmacies initially shipped out some medications but eventually stopped sending any medication while continuing to submit claims to insurance companies.

When insurance companies conducted audits, Jallah and Turley fabricated drug purchase invoices to validate their claims. They also created fake prescription delivery logs and instructed marketers to obtain patient signatures, even forging them when necessary.

Throughout the duration of the scheme, the pair submitted at least $46 million in fraudulent claims, with approximately $41 million reimbursed by insurers. Eight other defendants have previously pleaded guilty in connection with the case, resulting in a combined 290 months of prison time.

The investigation was conducted by the FBI’s Dallas Field Office and the Texas Department of Insurance. The case was prosecuted by Assistant U.S. Attorneys Marty Basu, Joshua Detzky, and Lindsey Pryor, with additional assistance from Assistant U.S. Attorneys Katherine Miller and Lisa Dunn.

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