- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2024-09-13T18:06:00
Former executives of Medly, an online pharmacy that is now shuttered, have been charged by the Securities and Exchange Commission (SEC) with defrauding investors.
Former CEO Marg Patel, former Chief Financial Officer Robert Horowitz, and former Head of Pharmacy Operations Chintankumar Bhatt, were charged with violating the antifraud provisions of securities laws, according to a press release Thursday. Bhatt was also charged with aiding and abetting Patel and Horowitz to violate securities laws.
Starting at least in February 2021, Bhatt entered millions worth of fake prescriptions into Medly’s system, according to the complaint, filed in U.S. District Court for the Eastern District of New York. Many of the fake prescriptions were for very high-cost medications.
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec. Select an option and click continue.
Annual Membership $499 Value offer
Full price one year membership with auto-renewal.
Membership $599
One-year only, no auto-renewal.
Gatekeepers including chief financial officers and the chair of the audit committee have a responsibility to shareholders to report fraud wherever they find it–especially when that fraud involves an artificial intelligence tool meant to combat fraud.
The chief compliance officer of a defunct pharmacy holding company was sentenced to 4 1/2 years in prison after being found guilty of conspiracy to commit healthcare fraud and wire fraud earlier this year.
Steven King, the chief compliance officer of a defunct pharmacy holding company, was found guilty of conspiracy to commit healthcare fraud and wire fraud for unnecessarily billing Medicare for more than $50 million in medical supplies.
USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.
Becton Dickinson medical device company will pay $175 million for “repeatedly” misleading investors about its Alaris infusion pump, a product the company knew was flawed and was sold without the required patient-safety approvals, the Securities and Exchange Commission said.
The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
