ST. LOUIS – The owner of a mail-order pharmacy in Creve Coeur appeared in federal court on Monday and admitted defrauding federal Medicare and state Medicaid programs of more than $5.5 million through an ongoing kickback scheme.
Prosecutors with the U.S. Attorney’s Office for the Eastern District of Missouri said Michael McCormac, 55, pleaded guilty to two counts of violating the Anti-Kickback Statute.
A federal grand jury indicted McCormac in October 2021.
According to the plea agreement, McCormac paid kickbacks to marketing companies for prescription referrals for topical creams and oral medications, as well as antibiotic and antifungal drugs, which were filled by McCormac’s company—GoLiveWell Pharmacy—and reimbursed by federal health insurance.
McCormac told the court he paid the kickbacks as percentages or margins (net profits on each prescription), and that he was aware patients did not have a valid doctor-patient relationship with the physicians who signed the prescriptions.
Between March 17, 2017, and Nov. 30, 2019, Medicare paid at least $4.7 million to GoLiveWell, Missouri Medicaid paid at least $490,000 to GoLiveWell, and Ohio Medicaid paid at least $330,000 to GoLiveWell.
McCormac will be sentenced on Aug. 16. He faces up to 10 years in prison and a $100,000 on each count. He’ll also be ordered to pay restitution.
