Morris and Phillip Esformes, a father and son team accused of participating in a multimillion-dollar kickback scheme, have agreed to pay $5 million to resolve federal charges against them, the Chicago Tribune reports this week.
The allegations arose from the 2004 sale of Total Pharmacy, a company partly owned by Phillip Esformes, to Omnicare Inc. for $32 million. Omnicare sweetened that price tag to the tune of several million dollars, authorities say, in exchange for promises that the Esformeses would steer contracts to the pharmaceutical giant from the dozens of nursing homes they controlled.
Tuesday’s agreement, which awaits formal approval by the DOJ, was reached just days before trial was set to begin. In June, Omnicare agreed to pay $17.2 million for its role in the alleged scheme.
Both settlements are the fruits of a qui tam suit brought six years ago by Maureen Nehls, a Total Pharmacy employee-turned-whistleblower. In return for her role in uncovering the scheme and developing the case, Nehls stands to earn a total of roughly $6 million.
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