Prosecutors are seeking a "substantial" sentence in federal prison for Wayne Wilkerson, the leader of the "Cream Scheme" multi-million-dollar healthcare fraud. Perry Piper and Franklin Clark said the sentence should be "in or near the advisory guideline range," saying it "best captures the harm caused by Wilkerson and accomplishes the stated goals of sentencing."
His guideline range is 235-293 months.
Florida attorneys for Wilkerson are asking for a period of home confinement followed by probation.
Wilkerson is set to be sentenced on July 28 by Judge Sandy Mattice, who presided over the lengthy trial.
The loss amount attributed to him is $35 million. Prosecutors said Wilkerson made over $14 million from the scheme. which prosecutors said "involved billing insurance companies outrageous amounts for creams that were, in virtually all cases, unwanted and unneeded."
Prosecutors said, "Virtually everyone who ordered creams was informed that there would be no cost to the customer. Almost all of them were told that they would be reimbursed for the study, or would otherwise be compensated. Some individuals were just told they would receive money: Kim and Rich Terry profited over $100,000; Dawn and Nelson Steele made $5,000. Dawn and Nelson Steele were told they had 'an opportunity for us to help little Wayne, and he was starting up a pharmacy company, and that they wanted us to try these creams.' ”
They also said, "This was an extensive scheme, it had numerous moving parts and players, was nationwide in its scope, and was lucrative. The ongoing fraud which Wilkerson devised and participated in took place over a period of at least two years, victimized numerous insurance companies, involved dozens of people to implement (counting all of the downlinks), had a nationwide effect, and involved millions of dollars. Contrary to Wilkerson’s protestations regarding his naiveté and his suggestion that he was trying to run a legitimate enterprise, this scheme involved rank fraud.
"The defendant used his previous medical training and experiences; he manipulated and concealed his activities in order to avoid safeguards designed to prevent fraud. The defendant’s actions were calculated and premeditated. The scheme evolved through several different types of victims: private insurance, the Tricare, then Hamilton County Schools.
"What is more troubling, there is no indication that he intended to stop or reform his ways. The industry evolved and ultimately foreclosed his cream scheme options. Only the diligence of federal investigators (FDA and DOD) revealed the true scope of the fraud. Those investigators put thousands of person-hours into this investigation. The proof at trial showed that the investigators, through their group effort, reviewed tens of thousands of documents and interviewed numerous witnesses. The cost of the investigation was extraordinary."