Drug Store Owners, Pharmacist Charged in Scam

Pennsylvania Attorney General Tom Corbett announced that agents from the Attorney General's Insurance Fraud Section have filed criminal charges against the owners of a Fayette County drug store, along with a Westmoreland County pharmacist who worked at the store.

The three are accused of fabricating several hundred prescriptions for Viagra and other expensive mediations in order to inflate pharmacy profits by submitting thousands of dollars in fraudulent bills to insurance companies.

Corbett identified the defendants as Louis D. Stern, 60, of Connellsville; Jay S. Stern, 56, of Connellsville. The Stern brothers are co-owners of Burns Drug Pharmacy, located in Connellsville. Jay Stern is also a pharmacist for the business.

Corbett said that criminal charges have also been filed against Chris M. Ruby, 34, of Greensburg, a former pharmacist at the business, along with Burns Wholesale Drug Corporation, of Connellsville, the company that operates the pharmacy.

Corbett said the Stern brothers and Ruby are accused of conspiring to repeatedly bill insurance companies for non-existent prescriptions. The three allegedly fabricated records for nearly 300 prescriptions that were never authorized by any doctors, for drugs that were not given to any patients. Over a two-and-a-half year period, they are accused of submitting approximately $70,000 in fraudulent bills for these fictitious prescriptions.

Louis and Jay Stern are both charged with two counts of insurance fraud, along with one count each of theft by deception, criminal conspiracy and tampering with public records, all third-degree felonies which are each punishable by up to seven years in prison and $15,000 fines.

Chris Ruby is charged with three counts of insurance fraud, along with one count each of Medicaid fraud, theft by deception, criminal conspiracy, tampering with public records, and violations of the controlled substances act, all third-degree felonies which are each punishable by up to seven years in prison and $15,000 fines.

The Burns Wholesale Drug Corporation is charged with two counts of insurance fraud, along with one count each of theft by deception, criminal conspiracy and tampering with public records, all third-degree felonies which are each punishable by up to $15,000 fines.

Corbett said Jay Stern and Chris Ruby both surrendered to agents from the Attorney General's Insurance Fraud Section on Oct. 15, and were preliminarily arraigned before Connellsville Magisterial District Judge Ronald Haggerty, Sr. Both were released on $50,000 bond with preliminary hearings scheduled for Oct. 23.
Louis Stern will be preliminarily arraigned at a later date.