In a lengthy, emotional letter submitted to a U.S. District Court judge, the wife of Family PharmaCare Inc. owner Chad Shedron pleaded that her husband not be sent to prison for defrauding Indiana’s Medicaid program of $3,521,961.22.
Life since Nov. 10, when members of the Attorney General’s Medicaid Fraud Unit and the Office of the Inspector General raided the West Lafayette business, has been “hell on our family,” Jacqueline Shedron wrote.
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“… We can’t undo what has been done. We can only move forward and teach our children that one must take responsibility and make amends for mistakes.
“I am begging you for the safety and physical, emotional and mental well-being of myself and my children that you place Chad under some type of house arrest so that he may help me.”
That wasn’t enough to sway a judge, however.
On Thursday, Chief Judge Philip Simon sentenced 36-year-old Chad Shedron, of Rossville, to four years and nine months in federal prison, followed by one year on supervised release, according to the U.S. Attorney’s Office for the Northern District of Indiana.
He also must repay the $3,521,961.22, plus a combined $527,670.99 in back income tax for 2007, 2008, 2009 and 2010.
The sentencing hearing took place in Hammond.
On May 31, Shedron pleaded guilty to health care fraud and tax evasion — admitting that he submitted fraudulent prescription claims to Indiana’s Medicaid program. The charges carried a maximum of 15 years in prison.
Family PharmaCare, which was at 500 Sagamore Parkway West in University Square Shopping Center, closed on Nov. 19, 10 days after federal agents spent hours there taking photos and boxing up documents.
Formal charges — and Shedron’s plea agreement — were filed on May 7.
According to the charges, Family PharmaCare submitted claims to Indiana’s Medicaid Program, asking for $3,521,961.22 in reimbursements for three medications prescribed to Medicaid patients. But it turned out that no doctors actually prescribed those drugs.
It cost roughly $2,000 to then deliver the drugs to Family PharmaCare.
The tax evasion charge is based on Shedron’s 2007 tax return. He claimed to have made only $6,169 — and was due a $1,377 refund — when his actual taxable income that calendar year was $595,756.61. He would have owed $189,009.
Under the plea agreement, Shedron admitted that he also is responsible for $338,661.99 in “tax losses” for 2008, 2009 and 2010.
To begin repaying the government, Shedron agreed to forfeit his two properties in Rossville; a mutual fund account; two vehicles; a baseball card collection valued at $217,840 and various rings, necklaces and other jewelry with a current resale value of $28,986.
In exchange, the U.S. Attorney’s Office agreed to recommend a sentence at the low end of advisory sentencing guidelines.
Shedron’s attorney, Brett Gibson, filed a motion asking for leniency because Shedron’s wife is unable to work and cannot care for their six children alone.
“There are no other persons who could help ameliorate the situation and provide a substitute for Chad’s care,” Gibson wrote.
Under the plea agreement, Shedron cannot appeal his sentence or conviction. He also agreed to permanent debarrment from participating in any federally funded health benefit program.
Shedron’s pharmacy license was placed on a 90-day emergency suspension in February through the state of Indiana for failing to properly dispose of medication after Family PharmaCare closed. It then expired on June 30.
The Internal Revenue Service and FBI also assisted in the investigation.
