5 Defendants In "Cream Scheme" Case To Have Separate Sentencings In Winchester

  • Monday, June 22, 2020

The five defendants in the federal "Cream Scheme" case will be sentenced separately in July.

Judge Sandy Mattice, who heard the lengthy case without a jury, will conduct the hearings at the Federal Courthouse in Winchester.

The judge in early March found all five defendants guilty of some of the 178 charges brought in the healthcare fraud case.

Prosecutors said the scheme involved signing up family, friends and others to receive creams produced at a compound pharmacy. The creams were billed to private insurance companies and the government insurance program for the military for as much as $15,000 a jar.

Here is the sentencing schedule:

Jayson Montgomery:  Sentencing set for 7/15/2020 11 a.m.

 

Billy Hindmon: Sentencing set for 7/17/2020 11 a.m. 

 

Michael Chatfield: Sentencing set for 7/23/2020 11 a.m.

 

Kasey Nicholson: Sentencing set for 7/27/2020 11 a.m. 

 

Jerry Wayne Wilkerson: Sentencing set for 7/28/2020 11 a.m.

 

Prosecutors said Wilkerson made over $14 million from the scheme and Chatfield raked in $5.4 million.

In addition, Wilkerson made $400,000 in charges to the Hamilton County Schools for creams billed at exorbitant prices.

Prosecutors Piper and Franklin Clark said Chatfield also got $1.5 million for passing on his "book of business" to Jimmy Collins. Collins and his wife, Ashley, formerly lived at Birchwood, but moved to San Diego. They were also arrested in the healthcare fraud and are awaiting trial. Ashley Collins asked to be tried separately, but that motion was denied.

They said insurance companies and Tricare paid a total of roughly $35 million for the compounded medications in the locally-based scheme. Private insurance paid roughly $22 million for prescriptions written by Candace Michele Craven, Toni Dobson, and Suzy Vergot.

Of this number for private insurance, Ms. Craven was responsible for roughly $21 million. She has been scheduled to be sentenced in San Diego on Friday. However, it was delayed until June 12. Attorneys said they wanted to wait until the cases of co-defendants had been settled.

Likewise, Tricare (the health agency for the military) was billed roughly $13.8 million for prescriptions written by Ms. Craven, Ms. Dobson, and Ms. Vergot as part of the scheme, it was stated.

They said Wilkerson (through his Top Tier corporation) made roughly $13 million in commissions from four pharmacies: Willow, Central Rexall, Florida Pharmacy Solution and Soothe. They said, "This number did not include the commission paid by Hamilton County Schools on the $954,000 that was billed to them."

Chatfield made $5,400,000 through his corporation Top Shelf, the government said.

Ms. Nicholson’s commissions were $938,740, of which she paid $204,000 to Matthew Perkins.

Hindmon’s commissions were $1,031,296, and Jayson Montgomery’s commissions were listed at $337,068.17.

Wilkerson was also found guilty of 21 counts of wire fraud, and Chatfield was ruled guilty of 21 counts of wire fraud as well.

Ms. Nicholson was found guilty of seven counts of wire fraud, while Hindmon was found guilty of 22 counts of wire fraud. Montgomery was found not guilty of all the wire fraud counts.

Wilkerson was found guilty of five counts of mail fraud, while Chatfield was found guilty of eight counts of mail fraud.

Ms. Nicholson was found not guilty on mail fraud charges. Hindmon was found guilty of a single mail fraud charge.

Wilkerson, Chatfield, Ms. Nicholson and Hindmon were found guilty of healthcare fraud, and Montgomery was ruled not guilty of healthcare fraud.

Wilkerson and Chatfield were both found guilty of five counts of payment of illegal remuneration.

Ms. Nicholson was found guilty of three counts of payment of illegal remuneration, and Hindmon was found guilty of two counts of payment of illegal remuneration.

Wilkerson was ruled guilty of three counts of receipt of illegal remuneration. Chatfield was found guilty of one count of receipt of illegal remuneration. Ms. Nicholson was found guilty of two counts of receipt of illegal remuneration. Hindmon was found guilty of two counts of receipt of illegal remuneration. Montgomery was found guilty of two counts of receipt of illegal remuneration - his only convictions.

Wilkerson was found guilty of one count of money laundering, while Chatfield was found guilty of five counts of money laundering.

 

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