HARRISBURG, PA — Pennsylvania Attorney General Michelle Henry announced charges were filed this week against nine individuals accused of orchestrating a complex $20 million Medicaid and Medicare fraud scheme through a South Philadelphia pharmacy.
The case centers on Broad Street Family Pharmacy, owned by 70-year-old Elizabeth Thompson and operated by her husband, Peter Dello Buono, along with pharmacist Frank Bengermino. Investigators allege the scheme ran from 2016 to 2021 and involved submitting fraudulent claims for expensive medications like the antipsychotic drug Latuda and high-reimbursement HIV treatments. Despite the high-value claims, authorities allege most prescriptions were not actually filled.
Instead, prosecutors claim customers were paid cash and sometimes other medications to bring their prescriptions to the pharmacy. Kickbacks were reportedly given to customers in exchange for selling pills back to the pharmacy. Investigators estimate that 86 percent of the pharmacy’s Medicaid billings during the five-year period involved the drugs at the center of the allegations.
Attorney General Henry described the alleged operation as “a sophisticated scheme” designed to exploit federal programs. “The owner and operator of this pharmacy were essentially pretending to fill prescriptions… while defrauding the Medicaid and Medicare programs of millions,” she said.
The scheme reportedly involved eight other defendants in addition to Thompson and Dello Buono, all facing charges including Medicaid fraud, conspiracy, theft by deception, and dealing in unlawful proceeds. Notably, officials allege that Dello Buono operated the pharmacy even though his pharmacist license had been suspended and he was barred from participating in Medicaid and Medicare services.
The pharmacy ceased operations in 2021 following a search warrant carried out by investigators. The case was brought forward after an investigation by the Pennsylvania Office of Attorney General’s Medicaid Fraud Control Section and the U.S. Department of Health and Human Services.
All defendants are presumed innocent unless proven guilty in a court of law. The prosecution is being led by Assistant Chief Deputy Attorney General Mark Levenberg.
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