Mississippi businessman charged for $510 million health-care fraud

Wade Walters, originally from Vicksburg, is among 12 people from Mississippi, Louisiana and Florida who are facing charges in connection with a multimillion-dollar health-care fraud scheme, the Department of Justice announced Wednesday, Sept. 25.

Walters, 52, now resides in Hattiesburg, Miss., and is a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies.

He was charged with 37 counts for his alleged role in a scheme to defraud TRICARE and other private health insurance companies, reports the Hattiesburg American.

According to the DOJ, the indictment alleges that Walters was paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme.

Based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million.

If convicted on all counts, Walters faces up to life in prison and $10 million in fines, the Hattiesburg American reported.

“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division in a statement. “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”

The indictment also outlines a connection between Walters and 13 others who have already been found guilty of similar crimes and also lists several unnamed co-conspirators.

The other Mississippians charged are Dr. Gregory Auzenne, 49, and Tiffany Clark, 45, both of Meridian. The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE.

Walters made an initial court appearance yesterday and was released on $250,000 bond. His trial date is set for Nov. 19.

“Healthcare fraud harms us all,” said U.S. Attorney Mike Hurst of the Southern District of Mississippi in the DOJ statement. “When individuals put their greed above the interests and well-being of our men and women in uniform and our veterans, this office will be there to swiftly bring them to justice.”

For more information, go to the Department of Justice website