Pharmacy Owner/Aspiring Screenwriter Overbills Healthcare Insurers for $41 Million in OTCs never received
Nicolas Cage poses with Ivor Jallah, a Dallas, Texas pharmacy owner. Jallah is also a screenwriter who worked on “Grand Isle” starring Cage. Photo credit: ShareGrid.
Jallah was first indicted in November 2020, and he pleaded guilty in June 2024 to conspiracy to commit healthcare fraud, according to his signed plea agreement.
On Oct. 23, a federal court sentenced Jallah to 10 years in federal prison, according to a Department of Justice press release.
Along with a prison sentence, the judge ordered him to pay $41,494,313.97 in restitution.
His coconspirator, Shannon Turley, 46, pleaded guilty in November 2023 to conspiracy to commit healthcare fraud and is set to be sentenced in November.
Nine Pharmacies Across Texas
These two operated nine pharmacies across Texas, including Preferred RX, EZ Pharmacy, Avenue H Pharmacy and Wallis Pharmacy, using them to bill insurance companies for over the counter medications that were never dispensed. The OTC meds included headache sprays, pain creams and scar creams, according to the indictment against Jallah and Turley. They fabricated purchase invoices and created false prescription delivery logs as “proof” of delivery.
The duo also paid “marketers” for insured patient’s personal information which they then used to submit prescriptions for insurance reimbursement, according to prosecutors.
Some of those patients knew what was going on, while the others were unaware of the situation and didn’t know their name was used to order drugs. Initially, the pharmacies shipped out some of the medications they billed to insurance, but at some point, they stopped shipping out any medication.
Jallah also directed pharmacy employees to create false prescription delivery logs and directed the so-called “marketers” to ask patients to sign the logs regardless of whether they received prescriptions. In cases where the marketers could not obtain patient signatures, Jallah directed pharmacy employees to forge them, according to the Department of Justice’s statement.
Over the course of the scheme, Jallah and Turley submitted at least $46 million in bogus claims to insurers, $41 million of which were reimbursed.
Eight defendants have previously pled guilty to charges associated with the pharmacy fraud and been sentenced to a combined 290 months in prison. Two other defendants await sentencing.
Hollywood Hopes
Jallah also tried to start a career in Hollywood as a director and screenwriter. He has worked as a screenwriter on four movies, including “Grand Isle” starring Nicolas Cage, according to his IMDB profile. The movie has a rating of 4.7/10 on the platform.
Jallah spells his first name as “Iver” on his filmmaking endeavors. Jallah was born and raised in Ft. Worth, Texas, according to his bio on IMDB.
Comments by Officials
In commenting about the case, law enforcement and prosecutorial officials noted that scams like Jallah’s add significant cost to the U.S. health care system, taking a toll on limited resources.
“Healthcare fraud schemes are more complex, more resource-consuming, and more costly to the American taxpayer than ever,” said Dallas FBI Acting Special Agent in Charge P. J. O’Brien. “For this defendant, as one avenue to personal enrichment ran its course, he simply began operating a new pharmacy or engaging in a new method to circumvent existing system safeguards. From fraudulent credentials to fabricated invoices, the conspiracy was designed to thwart detection.” O’Brien said.
“By billing for prescription medication patients never needed nor received, these defendants brazenly lined their pockets at the expense of each and every client who paid into health insurance,” U.S. Attorney Leigha Simonton said. “Healthcare is already a significant expense for many Americans. We cannot and will not allow pharmacy operators to abuse the system in this way.”
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