Wayne Wilkerson, who was convicted of healthcare fraud as the leader of the "Cream Scheme", told Judge Sandy Mattice in a 13-page letter that he checked with attorneys all along the way and he believed that everything was above board.
He said, "I don't blame the attorneys I engaged; they were doing the best they could with the little amount of information they had at the time. But I want you to know I never set out to commit fraud or violate the law. . . I would never have risked the incredible business I had worked extremely hard to build had I known my actions could be considered criminal and could risk my freedom. No amount of money is worth that."
Wilkerson also said his conviction of felony charges "has all but removed any hope I had of moving past this case and living a regular life. . . It's excruciating to think of not being able to marry the love of my life, Kasey Nicholson, and start a life together because of possible incarceration."
Ms. Nicholson was also convicted in the case. She is due to be sentenced on July 27 and Wilkerson on July 28.
He said he "left a great job making $175,000 a year to market a product I believed in and truly believed to be the future of pain management." He said he teamed with Brian Kurtz, who left a $220,000 job in Indiana.
Wilkerson said they went through tough times marketing the creams to doctors, depleting their savings and pay one another's bills. He said they spent $3,000 to $4,000 per month for lunches and dinners for presentations to physicians.
He said eventually over 300 doctors were prescribing the creams.
Wilkerson said he "truly thought I had discovered a break-through way to market my products by using tele-medicine and direct-to-patient marketing."
He said topical compounds had been around for a generation, but billing insurance for them only began in 2011. He said he entered the scene in 2013. He said, "In a sense we were learning as we went. There just wasn't a whole lot of guidance out there and little to no case law."
The whole process of the tele-medicine and direct-to-patient marketing operation just lasted about nine months, he noted.
Wilkerson said he became involved with Michael Chatfield, who prosecutors said was the top lieutenant to Wilkerson, when his wife, Natalie Chatfield, bruised her ribs in February 2014 and was seeking help with pain. He introduced her to the pain cream. He said Natalie Chatfield a blank prescription and she took it to Balanced Life MD in Ooltewah and saw Dr. Michelle Craven. He said Dr. Craven, who is also charged in the case, told Ms. Chatfield to have him (Wilkerson) come see her so she could introduce the cream to other patients.
He said the next day he met with Dr. Craven, Dr. Toni Dobson and Dr. Paul Miranda, telling them the creams did not get into the bloodstream and obviated the need for opioids. He said he "made it clear to the providers that the creams were expensive." Prosecutors said the creams were billed to insurance for as much as $15,000 per jar.
Wilkerson said, "The effectiveness of the products became apparent quickly as feedback from patients and the providers themselves began to build." He said Drs. Dobson and Suzy Vergot used the creams themselves.
He said on Dec. 12, 2014, "Everything changed when my office manager, Brande Breneman, told me a federal agent" came in asking questions pertaining to a federal criminal investigation." He said, "This rattled Brian and I to the core" and they moved to shut down the operation.
Wilkerson said they spent over $60,000 with legal counsel over four months to completely restructure the operation.
He said in September 2015 that Amanda Morgan Booker asked if he could help her now husband Keitha Booker access "the old school pain cream like he used to get." She said he had used the cream nine months earlier. He said he told her that insurance was no longer covering the cream and it was expensive and she would have to pay cash. He said it was then learned that the Hamilton County Schools, where Keitha Booker was employed, would cover the cost through its self-insurance.
He said Amanda Booker began marketing the creams to co-workers of Keitha Booker at Tyner High School. The county schools paid out over $940,000 for the creams.
Wilkerson said, "I have learned and lost much in the last five years. I've liquidated every asset I've ever owned to pay for my legal defense. I would never have gone to trial had I thought I was guilty. But I have learned some great life lessons. I have learned that true happiness comes from the people in my life not the possessions in my life."
He said, "Given the opportunity, I would have paid all the money back as opposed to risking my freedom and livelihood, but I never got that opportunity. . . I feel like the joy has been drained from me these days and sometimes it is hard to get through a normal day. I try to keep from being a cynical man, but I find it harder and harder to stay positive."
He stated, "I have lost all my pride, confidence and belief in myself. I am a broken man. I am deeply remorseful for the grief and heartache that my co-defendants, family and friends have been through. I can't help but feel responsible for this situation we are all in. I apologize for any and all of my actions that has led us here today.
"My only hope is you allow me the opportunity to prove myself as a man who has truly learned from this life-changing experience."