Interesting read, very important for healthcare companies to not engage in this type of fraud.
The full docket is here:
https://www.thehealthlawfirm.com/uploads/Amen...20Firm.pdf
The excerpt explaining the (alleged?) scheme about the person Joe mentions is below. I’m not sure what the outcome reads, but it reads like an episode of American Greed...
(Page 17-19)
Rainwater Rose was the first call center that PCA used for marketing purposes. It is based in Costa Rica, where it maintains the call center. It is managed by COO Jonathan Lambert.
17
Case 0:15-cv-62617-BB Document 9 Entered on FLSD Docket 03/07/2016 Page 18 of 24
115. From September 2014 through July 2015, PCA provided Rainwater Rose a forty percent (40%) commission on gross profit for every prescription that was filled and reimbursed. This was done through Alisa Cattogio's acquaintance, marketer Brian Podolak, who provided the introduction to Lambert in Costa Rica.
116. Rainwater Rose targeted patients using information provided to them by Podolak, and used a telemarketing script and facilitating doctor's orders by faxing patient scripts back to the physician for signature, which in turn was faxed back to Rainwater Rose and then to PCA.
117. Commissions of 40% were paid to Rainwater Rose net 30 after receipt of prescription.
118. Additionally, as with all of the marketing agencies, they told patients that they did not
have to pay copays as a way of inducing them to get the "free" product that their
insurance would cover.
119. Amazingly, Podolak's Linked In page shows the marketing agent's methodologies for
providing kickbacks to physicians for pain cream prescriptions. The page, which is addressed to marketing agents that he could compensate, brazenly states:
Searching for reps who are hungry to earn. Our unique model compensates physicians for their time to collect HIPAA compliant data from their patient base for our pharmacy clients. Physicians earn thousands ofdollars a month and takesjust moments ofone of their office staffs time. You set up the meeting, we will close them, you earn in a big way.
Almost ALL healthcare providers treat patients with some sort of pain on a daily basis. Many providers are even medical surgeons who frequently have the opportunity to write 2 prescriptions for a patient - one being for pain and another to help with scarring. Ask any physician how many of their patients are 100% pain free and they will tell you none ofthem are entirely pain free.
Responsibilities:
-Leverage existing physician relationships to market the products... Requirements:....
*Already marketing transdermal pain, wound, scar or other compound therapies? If so, we'd like to speak with you ifyou are experiencing any ofthe following:
* You are getting paid only minimal dollars per script.
* Not able to offer your physicians a professional services agreement.
* You are not pleased with the service your compounding pharmacy is providing to you or your providers and patients.
18
Case 0:15-cv-62617-BB Document 9 Entered on FLSD Docket 03/07/2016 Page 19 of 24
120.
121.
122.
123.
124.
Compensation:
You should be able to make a six figure income even at a part time status ifyou have the relationships experience and drive. Reps take home $80,000 per year on the low
end.. .Top reps take home $50K + per month.
Let's talk today.
Fascinating, and very disappointing to see our health are system be bastardized this way. I wonder what became of the defendants in this case?
When I see things like this and companies like Theranos become successful (even for a short period) the lack of ethical conduct is what makes it harder for good small companies to make it as it makes the pathway more difficult as companies like GNBT are left to pickup the pieces. Joe has done a nice job positioning the company to move forward. Let’s cheer NGIO onward to a successful IPO and beyond!
The full docket is here:
https://www.thehealthlawfirm.com/uploads/Amen...20Firm.pdf
The excerpt explaining the (alleged?) scheme about the person Joe mentions is below. I’m not sure what the outcome reads, but it reads like an episode of American Greed...
(Page 17-19)
Rainwater Rose was the first call center that PCA used for marketing purposes. It is based in Costa Rica, where it maintains the call center. It is managed by COO Jonathan Lambert.
17
Case 0:15-cv-62617-BB Document 9 Entered on FLSD Docket 03/07/2016 Page 18 of 24
115. From September 2014 through July 2015, PCA provided Rainwater Rose a forty percent (40%) commission on gross profit for every prescription that was filled and reimbursed. This was done through Alisa Cattogio's acquaintance, marketer Brian Podolak, who provided the introduction to Lambert in Costa Rica.
116. Rainwater Rose targeted patients using information provided to them by Podolak, and used a telemarketing script and facilitating doctor's orders by faxing patient scripts back to the physician for signature, which in turn was faxed back to Rainwater Rose and then to PCA.
117. Commissions of 40% were paid to Rainwater Rose net 30 after receipt of prescription.
118. Additionally, as with all of the marketing agencies, they told patients that they did not
have to pay copays as a way of inducing them to get the "free" product that their
insurance would cover.
119. Amazingly, Podolak's Linked In page shows the marketing agent's methodologies for
providing kickbacks to physicians for pain cream prescriptions. The page, which is addressed to marketing agents that he could compensate, brazenly states:
Searching for reps who are hungry to earn. Our unique model compensates physicians for their time to collect HIPAA compliant data from their patient base for our pharmacy clients. Physicians earn thousands ofdollars a month and takesjust moments ofone of their office staffs time. You set up the meeting, we will close them, you earn in a big way.
Almost ALL healthcare providers treat patients with some sort of pain on a daily basis. Many providers are even medical surgeons who frequently have the opportunity to write 2 prescriptions for a patient - one being for pain and another to help with scarring. Ask any physician how many of their patients are 100% pain free and they will tell you none ofthem are entirely pain free.
Responsibilities:
-Leverage existing physician relationships to market the products... Requirements:....
*Already marketing transdermal pain, wound, scar or other compound therapies? If so, we'd like to speak with you ifyou are experiencing any ofthe following:
* You are getting paid only minimal dollars per script.
* Not able to offer your physicians a professional services agreement.
* You are not pleased with the service your compounding pharmacy is providing to you or your providers and patients.
18
Case 0:15-cv-62617-BB Document 9 Entered on FLSD Docket 03/07/2016 Page 19 of 24
120.
121.
122.
123.
124.
Compensation:
You should be able to make a six figure income even at a part time status ifyou have the relationships experience and drive. Reps take home $80,000 per year on the low
end.. .Top reps take home $50K + per month.
Let's talk today.
Fascinating, and very disappointing to see our health are system be bastardized this way. I wonder what became of the defendants in this case?
When I see things like this and companies like Theranos become successful (even for a short period) the lack of ethical conduct is what makes it harder for good small companies to make it as it makes the pathway more difficult as companies like GNBT are left to pickup the pieces. Joe has done a nice job positioning the company to move forward. Let’s cheer NGIO onward to a successful IPO and beyond!
4
