Lockport

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Lockport woman convicted of defrauding organ donation nonprofit

Jan 19, 2017 | WLSAM Staff

(LOCKPORT) A southwest suburban Lockport woman was convicted Wednesday of defrauding a nonprofit network that coordinated organ and tissue donations in Illinois and northwest Indiana.

A jury convicted Debra A. Schultz, 46, of three counts of wire fraud for the scheme, according to a statement from the U.S. Attorney’s Office for the Northern District of Illinois. Along with her codefendants, Schultz submitted false invoices to the nonprofit, claiming she worked to help physicians procure organs or tissues.

One of the purported physicians was her co-defendant Eric V. Murff, prosecutors said. Many of the false invoices specified that Murff, as well as Schultz’s son, were doctors who performed organ and tissue procurement. In reality, neither was a doctor, and her son was a 17-year-old high school student when the fraud began.

Another defendant, Shari L. Hansen, approved the fake invoices and authorized and directed the nonprofit to issue checks to Murff and Schultz’s son.

Prosecutors said the scheme netted $652,298 in illegal profits between March 2008 and April 2010 for those involved in the fraud, including Schultz, who retained thousands of dollars for her own benefit.

The conviction carries a maximum sentence of 60 years in prison, prosecutors said. Schultz was expected to be sentenced May 19.

Lockport pharmacist accused of $2.4M health care fraud scheme

May 27, 2015 | WLSAM Staff

(LOCKPORT) A southwest suburban pharmacist has been indicted in a $2.4 million fraud scheme that involved bogus insurance claims, identity theft, swapping out prescription drugs for supplements, and selling counterfeit Viagra, federal authorities said Tuesday.

Walter Beich, owner and pharmacist at Corwin Pharmacy in Lockport, was charged in a 12-count indictment returned last week by a federal grand jury, a statement from the U.S. Attorney’s office said.

The indictment alleges Beich defrauded Medicare, Medicaid, Blue Cross Blue Shield, Humana and United Healthcare out of $2.4 million by filing fraudulent claims for prescription drugs, the statement said.

Beich filed the claims for drugs that were either not dispensed to customers, or were switched out for less-expensive supplements, the statement said. Authorities also claim Beich dispensed a foreign-sourced drug to customers who had been prescribed Viagra.

Beich had his employees create fake prescriptions made to look like a physician had called them in over the phone, the statement said. The indictment also said Beich filled customers’ prescriptions with physician samples, then billed insurance companies as though he had obtained the medications through normal commercial channels.

Corwin Pharmacy had been in business for more than 50 years when it shut down in November 2014 after filing for bankruptcy, according to published reports. Its website was blank as of Tuesday evening.

Beich, 61, is charged with health care fraud and aggravated identity theft for using names and identifying information of patients and physicians, the statement said. He will next appear in court June 26.

The fraud charge carries a maximum sentence of 10 years in prison, a $250,000 fine and mandatory restitution, the statement said. Federal authorities are also seeking a $2.4 million forfeiture in the case.