Federal order implicates S.W. Virginia businessmen
The Roanoke Times
Jun 25, 2004
The federal government is demanding $21.8 million in penalties from one of the nation's largest institutional pharmaceutical companies in connection with a 1997 deal with prominent Roanoke and New River Valley businessmen that officials say involved kickbacks.
It is the largest amount of money ever sought in a civil penalty, according to the Office of Inspector General in Washington, D.C., the same agency that issued the order Wednesday.
Involved in the deal, according to the order, were Robert Cranwell and Richard W. Frizzell of Blacksburg and William Cranwell of Roanoke, who at the time jointly owned HCMF Corp., a privately held company with offices in Roanoke and Blacksburg. Also named is Keith Green, who was HCMF's chief executive officer in 1997, and Charles B. Walker of Richmond, who has been described as a business associate of William Cranwell. None of the businessmen has been penalized by the Office of Inspector General.
The federal order states that PharMerica Drug Systems Inc. of Tampa, Fla., agreed to pay the men an excessive amount for a small Roanoke pharmacy. In exchange, the sellers would send PharMerica all the Medicaid patient pharmacy business from HCMF's 17 nursing homes and eight assisted-living facilities for the next seven years.
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