Former pharmacy CEO gets max sentence for selling repackaged drugs to nursing homes
A former pharmacy CEO has been sentenced to 10 years in prison on charges that he repackaged and sold drugs returned from nursing homes.
Kim Mulder pleaded guilty earlier this year to conspiracy to commit healthcare fraud after his company, Michigan-based Kentwood Pharmacy, billed Medicare, Medicaid and private insurance companies $79 million for the repackaged drugs, which should have been disposed once they were returned.
Eighteen Kentwood employees were convicted, including six pharmacists who received felony convictions. U.S. District Judge Robert Jonker indicated an intention to set Mulder's restitution at $8 million, which would likely be in addition to prison time.
Kentwood Pharmacy is believed to have sold misbranded and adulterated drugs to more than 800 nursing and adult foster homes between 2006 and 2010. The repackaging of the drugs led to cross-contamination, improper labeling and the placement of incorrect drugs into stock bottles, officials told MLive.
Kentwood was shut down after a raid by federal officials last year.