Mississippi Resident to Pay $31M for Alleged Involvement in Healthcare Kickback Scheme

By the Constantine Cannon Whistleblower Team

On March 19, Acting United States Attorney Kevin Davidson announced that the government secured a civil judgment against Mississippi resident Robert L. Crites for allegedly orchestrating a commission-based referral scheme in violation of the False Claims Act and the Anti-Kickback Statute. The scheme targeted federal healthcare programs.[1]

A federal judge entered judgment against Crites, the owner of Health Services Plus and TriCom, LLC, and a contractor for Extraordinary Scripts, Inc., for $31,039,134.82 on March 16.[2]

What Kind of Beneficiaries Did the Scheme Allegedly Target?

Court records indicate that Crites and associates from Extraordinary Scripts engaged in an unlawful kickback scheme by identifying and referring patients nationwide to Cloverland Pharmacy in Montgomery, Alabama. Crites allegedly targeted TRICARE beneficiaries, the healthcare program for U.S. military members and their families. In return, the pharmacy paid kickbacks to Crites and his co-conspirators for each referral.[3]

Total Judgment and Damages

The $31,039,134.82 total judgment against Crites includes $16,342,424.82 in damages. This is three times the $5,447,474.94 in losses sustained by TRICARE, as required under the False Claims Act, in addition to $14,696,710 in civil penalties imposed by the court. Crites was the last remaining defendant in this case, as the government previously settled with five other co-defendants in the lawsuit and others involved in a parallel civil forfeiture action.[4]

This case demonstrates the government’s dedication to fighting healthcare fraud and preserving the integrity of federal healthcare programs.

Healthcare Fraud

Healthcare fraud can take many forms. In this case, the alleged scheme involved violations of the False Claims Act and the Anti-Kickback Statute and Stark Law.

The Anti-Kickback Statute and Stark Law prohibit medical providers from offering or receiving kickbacks, remuneration, or anything of value for patient referrals covered by government healthcare programs like Medicare and Medicaid. They also restrict certain types of financial relationships. This is just one example of the types of healthcare fraud that whistleblowers can report.

Constantine Cannon partner Marlene Koury commented: “Healthcare fraud erodes public trust and can potentially put patients at risk. The Anti-Kickback Statute remains one of the most important tools the government uses to combat healthcare fraud and protect public health.”

How Does the False Claims Act Fight Fraud?

As noted in the DOJ’s 2025 roundup of False Claims Act recoveries, the government continues to prioritize healthcare fraud enforcement, and the False Claims Act is one of the government’s most successful tools in this endeavor.

In 2025, out of the record-breaking $6.9 billion the government recovered from False Claims Act matters, $5.7 billion came from matters involving healthcare-related fraud. And nearly all of the top 10 whistleblower awards from 2025 went to False Claims Act whistleblowers.

Our Firm Represents False Claims Act Whistleblowers

While it is unknown whether whistleblowers were involved in initiating this case, individuals are often the ones to step forward with information concerning fraud. Under the qui tam (or whistleblower provisions) of the False Claims Act, private parties can file lawsuits on behalf of the government and may receive up to 30% of the government’s recovery.

If you believe you have a case or would like to learn more about our firm’s successes, the whistleblower rewards programs, or what it means to be a whistleblower, please contact us. We will connect you with an experienced member of our whistleblower team for a free and confidential consultation.

Speak Confidentially With Our Whistleblower Attorneys

Sources:

[1] See https://www.justice.gov/usao-mdal/pr/mississippi-man-ordered-pay-31-million-role-healthcare-kickback-scheme

[2] Id.

[3] Id.

[4] Id.

Tagged in: Anti-Kickback and Stark, False Claims Act,