Four Puerto Rico Pharmacies Agree to Pay $4.6 Million to Resolve Medicare and Medicaid Fraud Allegations

Four pharmacies in Puerto Rico and their owners have agreed to pay a combined total of $4.6 million to resolve allegations of Medicare and Medicaid fraud. The settlements, announced by the U.S. Attorney’s Office for the District of Puerto Rico, concluded a series of investigations conducted between February and May 2026.

The government alleged that between January 2021 and January 2024, the pharmacies billed federal health programs for diverted prescription drugs that were sold to unsuspecting patients. Diverted drugs are medications that have been taken from legal supply chains and redistributed, often without proper handling or storage, raising serious questions about their safety and effectiveness. The settlements address claims that the pharmacies misrepresented these drugs as having come from approved distributors, despite their unverifiable origins.

The four pharmacies involved and their respective owners agreed to pay penalties ranging from $600,000 to $2 million per entity. The investigations were conducted by the U.S. Attorney’s Office for the District of Puerto Rico, the Department of Health and Human Services Office of Inspector General, and the Food and Drug Administration’s Office of Criminal Investigations.

This case reflects the government’s sustained commitment to pursuing healthcare fraud that not only wastes taxpayer dollars but also endangers patient safety by introducing unverified medications into the supply chain.