Pharmacist sentenced to prison for $2M fraud scheme
By Mike Mohundro
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PADUCAH, Kentucky (WSIL) — A western Kentucky man has been sentenced to federal prison for his role in a multimillion-dollar health care fraud scheme, authorities announced this week.
According to the U.S. Attorney’s Office for the Western District of Kentucky, Michael Shawn Boaz, 47, of Clinton, was sentenced to 30 months in prison followed by three years of supervised release. He was also ordered to pay $1,806,212.90 in restitution. Boaz previously pleaded guilty to one count of conspiracy to commit health care fraud and 13 counts of fraudulent prescriptions.
U.S. Attorney Kyle G. Bumgarner, along with officials from the U.S. Food and Drug Administration Office of Criminal Investigations and the U.S. Department of Health and Human Services Office of Inspector General, announced the sentencing.
Court documents stated that Boaz, while working as a licensed pharmacist, conspired with another individual to defraud health care benefit programs at two Kentucky pharmacies between 2017 and 2021. The scheme resulted in losses exceeding $2.18 million.
Prosecutors said Boaz added boutique vitamins to customer prescription orders, falsely telling customers the products were free. In reality, authorities said he billed insurance providers between $1,000 and $6,000 per bottle. Prosecutors said he also submitted fraudulent claims for the antihistamine Carbinoxamine Maleate, purchasing it for approximately $605 per prescription and billing insurers between $2,000 and $16,000.
Boaz entered his guilty plea on November 3, 2025.
His co-conspirator, Christopher Clayton Augustus, 42, of Paducah, pleaded guilty on August 7, 2025, to conspiracy to commit health care fraud, fraudulent prescriptions, and aggravated identity theft. He is awaiting sentencing.
In a statement, Bumgarner emphasized the broader impact of such crimes. “Fraudsters like Boaz that steal from health care benefit programs negatively impact everyone’s health care costs,” he said. “Health care fraud is a top priority of our office, and we will continue to aggressively investigate and prosecute those who defraud these programs.”
The case was investigated by multiple agencies, including the FDA, the Department of Health and Human Services, the Department of Labor, the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse Control, and the Kentucky Board of Pharmacy. Assistant U.S. Attorney Raymond McGee prosecuted the case.
The announcement comes as the U.S. Department of Justice expands efforts to combat fraud nationwide. On April 7, the agency announced the creation of its National Fraud Enforcement Division, aimed at strengthening investigations and prosecutions involving misuse of taxpayer funds.
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