Kentwood Pharmacy CEO must pay $8.8M in restitution

GRAND RAPIDS, Mich. (WOOD) — The former CEO of a pharmacy that was at the center of a scheme to repackage and resell old drugs will have to pay more than $8.8 million in restitution, a federal judge ruled this week.

Kim Mulder was sentenced in August to 10 years in prison for conspiracy to commit health care fraud.

But it took until Tuesday for Chief U.S. District Court Judge Robert Jonker to make a final judgement on restitution. Jonker decided that Mulder owes $8,820,708.50.

That’s 10 percent of the $88,207,085 in total sales between 2006-2010 affecting the health care plans that the pill-recycling scheme defrauded.

Here’s how it breaks down:

  • Medicare: Total sales were $64,237,687. Mulder owes $6,423,768.70.
  • Medicaid: Total sales were $18,236,815. Mulder owes $1,823,681.50.
  • Indiana Medicaid: Total sales were $580,145. Mulder owes $58,014.50.
  • Blue Cross Blue Shield Michigan: Total sales were $4,750,830. Mulder owes $475,083.
  • Federal Employees Health Benefit Program: Total sales were $401.608. Mulder owes $40,160.80.

Mulder is among 17 pharmacy employees and officials indicted in the scheme following a November 2010 raid of the company’s headquarters and other offices.

Federal investigators said Mulder conspired with former chief pharmacist Lawrence Harden and former director of sales Richard Clarke to return, restock and redispense drugs that had been previously provided to nursing homes and adult foster care homes. That plan was dangerous — authorities say it could have led to cross-contamination, which can be lethal for people with drug allergies.

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