Michigan Pharmacy Executive Accused in Fraud Investigation

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Attorney General Mike Cox announced Medicaid fraud charges Wednesday against the president of a Livonia-based provider of pharmacy services.

He described the case against Daniel Lohmeier, president of Specialized Pharmacy Services Inc., as the largest criminal health care fraud investigation in state history. Lohmeier is charged with 148 counts of Medicaid fraud. Each count is a felony punishable by up to four years in prison.

The company is a subsidiary of Covington, Ky.-based Omnicare, which provides pharmacy services to long-term care facilities.

Lohmeier had not been arrested at the time Cox held a joint afternoon news conference with the director of the Michigan Department of Community Health. Cox said he did not consider Lohmeier to be a flight risk.

A message seeking comment was left for Lohmeier.

Cox said more charges could be coming in the investigation, which began in 2003. The charges announced Wednesday involve about $5 million, Cox said.

"This isn't the end of the story," Cox said. "This is massive fraud."