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Colorado charges Havana, Alameda Pharmacy for alleged theft of millions

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Staff Writer | February 17, 2017
Colorado Attorney General Cynthia H. Coffman announced the filing of charges against George Sackey, owner of Havana Pharmacy and Alameda Pharmacy.
Cynthia H. Coffman
Healthcare   Medicaid funds
Sackey was charged with one count of felony theft and one count of felony computer fraud after allegedly fraudulently billing Medicaid for over $4.4 million.

Sackey allegedly created a specially branded pain cream the “Havana Pain Cream,” and provided physicians with pre-printed prescription forms to order this cream for their patients.

Two of the primary ingredients for the cream were Ketoprofen and Lidocaine. Between 1/7/2014 and 2/6/2017 the Havana Pharmacy billed Medicaid for $2,435,070.66 in Ketoprofen tablets and $1,967,125.03 in Lidocaine Ointment.

These amounts made Sackey’s pharmacies major outliers in Medicaid billing as larger pharmacy chains were averaging approximately $20,000 - $50,000 during the same time period.

Sackey is alleged to have billed Medicaid for Lidocaine ointment and Ketoprofen tablets to make the compounds, while actually using bulk powder form, significantly increasing his profit margin while allegedly defrauding the State of Colorado.

An arrest warrant was issued for Sackey, and he was taken into custody by federal law enforcement officers at Denver International Airport while preparing to board an international flight.