AG Sunday Announces Guilty Pleas in $12 Million Medicaid Fraud Scheme at Philadelphia Pharmacy; Two Scheme Leaders Jailed

HARRISBURG — Attorney General Dave Sunday announced that the two leaders of a $12 million Medicaid Fraud scheme involving Broad Street Pharmacy in South Philadelphia have pleaded guilty and were sentenced this week to state prison.

An Office of Attorney General-led collaborative investigation resulted in prison sentences for Peter Dello Buono — who managed daily operations — and Frank Bengermino, the in-store pharmacist.

Dello Buono, 70, will serve 2 to 5 years in state prison; is prohibited from owning, operating or working at a pharmacy; and is excluded from the Medicaid and Medicare programs.

Bengermino, 70, will serve 1½ to 5 years in state prison, and abide by the same other conditions as Dello Buono.

The scheme was based on billing expensive medications to Medicaid and Medicare, even though very little of the medications were actually acquired and disbursed at the pharmacy.

“This was a years-long conspiracy that defrauded state and federal programs designed to help people and families in need, and ripped off taxpayers who fund those programs,” Attorney General Sunday said. “This criminal enterprise prioritized personal greed over the wellbeing of Pennsylvanians. I credit our team, the grand jurors, and investigative partners for seeing this case through to a just resolution that sends a message that Medicaid Fraud is far from a victimless crime.”

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