Situation
Patient Care America's CEO led the compounding pharmacy at the center of a scheme involving TRICARE benefits for veterans. The matter unfolded in two phases. A civil False Claims Act case resolved first, in September 2019, with a settlement north of $65 million and a payment of $21.36 million.
The criminal exposure came later. Smith was indicted for false statements connected to a fraud the government valued at roughly $40 million and pled guilty. At sentencing, the government pushed for fifteen months in prison.
Approach
The firm handled the civil phase under Daniel Fridman and the criminal sentencing under Adam Fels, with co-counsel. The sentencing effort ran four days and centered on persuading the court that the government's recommendation overstated what the conduct warranted.
Result
The court held Smith to the 0 to 6 month range in February 2024, well below the fifteen months the government had sought. The result reflects how sustained sentencing advocacy can move a court away from the prosecution's number even after a guilty plea.