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Canton Mississippi Pharmacist, Silas Richmond, sentenced in Cream Scheme fraud.

Silas K Richmond a Canton, Mississippi pharmacist was sentenced today to sixteen months in prison and three years of probation for costing TRICARE over $350,000 in fraudulent billing that netted him just $21,000 in commissions. Richmond recruited a sole marketer in the scheme as was not a major player according to prosecutors.  The sentence carried up to 30 months, but Judge Starrett gave Richmond a break for his cooperation and for taking responsibility for his mistakes. Richmond must also repay over $350,000 in restitution at a minimum of $250.00 per month and be subject to having any federal benefits withheld and applied to the restitution amount.

Prosecutors praised Richmond for reaching out to them early on and helping them to “unwind” the fraud. Prosecutors even argued against some of the sentencing enhancements presented by the Department of Probation in Richmond’s Pre-Sentencing Investigative Report. Judge Starrett told Richmond that he felt like he (Richmond) was a “stand up guy” who just got caught up in a much bigger scheme, but who came clean early.  Judge Starrett also praised Richmond for not giving up in the face of his mistakes, and for staying employed and doing very hard work with his tree service. Starrett also told Richmond that he was sorry to see Richmond in this situation, and he was sure Richmond was sorry as well.

Silas Richmond worked for Marco Moran, a pharmacist in Canton and CEO of Dewmar International. Moran pleaded guilty to over $12 million in healthcare fraud, and is scheduled to be sentenced in March.  Interestingly, Moran funneled over $5 million of the fraud proceeds from his partnership with the Thomleys at Medworx, LLC through a wholly owned subsidiary of Dewmar. This naturally led to a spike in stock price. Marco Moran is scheduled to be sentenced in March.

Watch the courthouse live coverage here.

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