Houston Pharmacist Gets 10 Years in $21M Workers’ Comp Fraud Case

A Houston pharmacist has been sentenced to 10 years in prison in a $21 million workers’ compensation fraud case.

George Philip Tompkins, 75, the self-proclaimed “Compound King” and former owner of Piney Point Pharmacy, and his wife, Marene Kathryn Tompkins, were both sentenced for their roles in an approximately $21.8 million Department of Labor (DOL) – Office of Workers’ Compensation Programs and Federal Employees Compensation Act fraud scheme, the U.S. Attorney’s Office reported.

Marene Kathryn Tompkins, the former vice president of Piney Point Pharmacy, was sentenced to 30 days of home confinement and three years of supervised release.

At sentencing, George Tompkins was ordered to pay $12,300,381.36 in restitution and forfeiture, and Marene Tompkins was ordered to pay $950,745.10 in restitution and forfeiture.

In March, a jury convicted George Tompkins of conspiracy to pay and receive kickbacks, conspiracy to commit health care fraud, conspiracy to commit money laundering, 11 counts of health care fraud, and three counts of wire fraud. Kathryn Tompkins pleaded guilty on Jan. 3 to one count of conspiracy to pay kickbacks, according to the U.S. Attorney’s Office.

Evidence at trial showed that George Tompkins and others billed the DOL approximately $21.8 million for medically unnecessary compound gels and creams that were predicated on illegal kickback payments. It was also shown that George Tompkins tried to disguise illicit kickback payments as legitimate “marketing” expenses and continued to ship patients compound gels and creams even after patients repeatedly complained they did not want them.

As part of her guilty plea entered before the trial, Marene Tompkins admitted that she conspired with her husband and others to pay illegal kickbacks as part of the scheme.

In addition to the U.S. Attorney’s Office, the investigation was conducted by USPS-OIG, DOL-OIG, IRS-Criminal Investigation, U.S. Department of Homeland Security-OIG, and Department of Veterans Affairs-OIG.