Maryland OB/GYN to Pay $507,500 to Settle Medicare and TRICARE Fraud Allegations
Baltimore, Md. — A Maryland gynecologist has agreed to pay more than half a million dollars to resolve federal allegations that she participated in a telemarketing scheme that defrauded Medicare and TRICARE by issuing thousands of fraudulent prescriptions for unnecessary medical products, prosecutors announced Thursday.
Dr. Valinda R. Nwadike, an obstetrician-gynecologist, agreed to pay $507,500 to settle claims that she violated the False Claims Act by signing thousands of prescriptions for compounded drugs and durable medical equipment between 2014 and 2018 without proper medical evaluation, according to the U.S. Attorney’s Office for the District of Maryland.
Federal officials alleged that Nwadike worked with telemarketing companies to approve prescriptions for knee braces and topical creams following only brief phone calls with patients—often without reviewing their medical histories or examining them in person. The prescriptions were then billed to Medicare and TRICARE, the federal health programs for seniors and military service members.
“When physicians write prescriptions for medically unnecessary drugs and equipment, they abuse our federal health care programs,” said U.S. Attorney Kelly O. Hayes. “Our office will continue working with federal partners to ensure that taxpayer dollars are protected and fraudulent providers are held accountable.”
The Justice Department said the scheme led Medicare and TRICARE to pay for thousands of unnecessary medical products, enriching telemarketers and supply companies that solicited patients nationwide.
“This settlement demonstrates our commitment to ensuring that Medicare dollars are only paid for services that are needed and appropriate,” said Maureen Dixon, Special Agent in Charge with the Health and Human Services Office of Inspector General (HHS-OIG).
Officials from the Defense Criminal Investigative Service (DCIS), which oversees fraud affecting military health programs, said such misconduct harms both taxpayers and legitimate medical professionals. “Healthcare fraud is not a victimless crime,” said Allison Russo, Special Agent in Charge of the DCIS Mid-Atlantic Field Office.
The civil settlement resolves allegations brought under the False Claims Act but does not constitute an admission of liability by Dr. Nwadike, according to the Justice Department.
Florida Mother and Daughter Convicted in $4.9 Million Medicare Kickback Scheme
San Diego, Calif. — A federal jury in San Diego has found a mother and daughter from Florida guilty of orchestrating a multi-million-dollar Medicare fraud and kickback scheme involving sham prescriptions and phony telehealth consultations, prosecutors said Thursday.
Cindy Justice, 70, and her daughter Ashleigh Davis, 41, both of Melbourne, Florida, were convicted after an 11-day trial on multiple counts, including health care fraud, illegal kickbacks, and conspiracy. Justice owned PureScience Rx, a pharmacy based in Poway, California, while Davis served as operations manager and a licensed pharmacy technician.
Prosecutors said the pair paid marketers illegal commissions that were disguised as legitimate business payments in exchange for generating prescriptions obtained through bogus telehealth encounters that lacked any real medical examination. Those prescriptions were then billed to Medicare for expensive compounds and “footbath” medications that were neither FDA-approved nor medically necessary.
“Medicare exists to care for patients — not to bankroll sham prescriptions and kickback schemes disguised as medical treatment,” said U.S. Attorney Adam Gordon for the Southern District of California.
According to trial evidence, call centers working with the defendants targeted Medicare beneficiaries to persuade them to accept medications regardless of need. Some prescriptions were issued using stolen identities of nurse practitioners, while PureScience Rx submitted claims falsely representing them as legitimate. Medicare ultimately paid out more than $4.9 million based on the fraudulent submissions.
Investigators said the women concealed the kickbacks through fake contracts and fabricated invoices intended to make the payments look like hourly wages. Expert witnesses testified that the “footbath” drug compounds had no recognized medical purpose.
“The FBI prioritizes Medicare fraud and meticulously investigates anyone trying to scam the United States government and its taxpayers,” said TJ Holland, Acting Special Agent in Charge of the FBI San Diego Field Office. “Today’s conviction demonstrates the commitment of our agents and our partners at HHS-OIG to holding fraudsters accountable.”
Justice and Davis are scheduled to be sentenced July 29, 2026, and face up to 10 years in federal prison and fines of $250,000 for conspiracy to commit health care fraud and pay kickbacks, along with additional penalties for related charges.
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