Attorney General Laxalt Announces Sentencing of Caliente Pharmacist for $1.5 Million in Insurance and Medicaid Fraud

January 13, 2017

 Defendant Sentenced to Prison and Ordered to Pay Full Restitution of $1.5 Million

    Carson City, NV – Today, Nevada Attorney General Adam Paul Laxalt announced that former Lincoln County Commissioner Adam Katschke, 44, of Caliente, was sentenced for insurance and Medicaid fraud. Katschke previously pleaded guilty to the felonies for his role in defrauding insurance companies by billing for large amounts of compound pharmaceutical prescriptions that were rarely provided as billed to the patients or prescribed by a physician. Katschke was the head pharmacist and owner of Meadow Valley Pharmacy (MVP) located in Caliente, Nevada. The fraudulent acts were committed between April 2013 and April 2015.

      Seventh Judicial District Court Judge Gary Fairman sentenced Katschke to 12-48 months in prison and ordered him to pay restitution in the amount of $1,500,000 to all affected insurance companies.

        “The defendant stole a million and a half dollars from taxpayers through Medicaid, a program designed to provide care for those in need, not line the pockets of fraudsters,” said Laxalt. “My Office will continue to work with our law enforcement officers to ensure that frauds like this one do not go unpunished.”

          After information was initially provided by the Nevada Department of Public Safety, Investigative Division (NDI), the Insurance Fraud Unit (IFU) and the Medicaid Fraud Control Unit (MFCU) of the Office of the Nevada Attorney General worked collaboratively with the Lincoln County Sheriff’s Office to investigate this fraud. During the course of the investigation, the IFU and MFCU discovered that Katschke and MVP were not dispensing compound pharmaceuticals as billed, and had created false documentation for the pharmaceuticals allegedly dispensed.

            On behalf of the Attorney General and the State, the MFCU investigates and prosecutes financial fraud by those providing healthcare services or goods to Medicaid patients. Persons convicted of Medicaid fraud may also be administratively excluded from future Medicaid and Medicare participation. Anyone wishing to report suspicious activities regarding any related fraud may contact the IFU or MFCU at 702-486-3420 or 775-684-1100.

              Senior Deputy Attorney Generals Ronda Clifton and Andrew Schulke prosecuted this case.

                To view the criminal Information for Katschke, click here. To file a complaint with our Office, click here.


                  KATSCHKE, ADAM

                     (Photo courtesy of the Lincoln County Sheriff’s Office)