Free-phone offers allegedly fed a $51 million health-care fraud scheme
A federal indictment accuses a Jacksonville pharmacy owner and an accountant of using personal information, false diagnoses and money laundering to profit from insurance claims.
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- 12 November 2026
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Two men charged in 31-count indictment
Federal prosecutors charged Jacksonville pharmacy owner Charlie Bernard Griffin III, 61, with health-care fraud and money laundering and charged accountant Ethelbert Chinenye Nwanegbo, 47, with money laundering. The 31-count indictment alleges that insurers paid approximately $51 million on fraudulent claims linked to First Coast Community Development, a pharmacy controlled by Griffin. Prosecutors are seeking forfeiture tied to alleged proceeds, including money already seized from bank accounts, real estate and vehicles. Both men are presumed innocent unless convicted in court. [1] [2]
Personal data allegedly collected through cellphone promotions
According to the indictment, marketers set up tables in lower-income Jacksonville neighborhoods and offered free government-supported cellphones. While helping people apply, the marketers also collected identifying and health-insurance information. Prosecutors say the pharmacy paid the marketing company $200 for each referral that produced a reimbursed prescription, while individual marketers received smaller payments. The government characterizes those payments as illegal kickbacks because compensation depended on a successful insurance claim. Local reporting said investigators interviewed people whose information appeared in billing records and found many had not requested the medications. [1] [2]
False diagnoses and unwanted drugs alleged
The indictment says a nurse practitioner authorized prescriptions for HIV post-exposure prophylaxis without examining or speaking to many of the named patients. Prosecutors allege the pharmacy used diagnosis codes suggesting HIV or sexually transmitted disease exposure so Medicare, Medicaid or private insurers would pay. Medications were then shipped, sometimes to people who did not want or need them. The allegations concern tens of thousands of claims. Three other participants — Jonathan Gholston, pharmacist Albert Chester and nurse practitioner Rashan Jones — were charged separately and agreed to plead guilty, according to prosecutors. [1] [2]
Accountant accused of moving proceeds for a fee
Prosecutors allege Nwanegbo received fraud proceeds into accounts he controlled, moved money through additional accounts and returned funds to Griffin and another participant after keeping an approximately 10 percent fee. The indictment seeks about $6.1 million in forfeiture from Nwanegbo and larger sums from Griffin. The FBI and the Department of Health and Human Services inspector general investigated. The case now moves to arraignment and pretrial litigation, where defense lawyers can challenge the allegations, evidence and forfeiture demands. [1] [2]
Claims data will be tested against patient and business records
Health-care fraud cases typically turn on whether billed prescriptions or services were medically necessary, actually provided and lawfully authorized. Prosecutors may compare insurer claims with patient files, pharmacy inventories, prescriber records, bank transfers and communications among participants. A large billing total is not automatically the same as proven loss, and sentencing calculations—if there are convictions—can be contested. Griffin and Nwanegbo are presumed innocent and may dispute both their roles and the government’s interpretation of the records. Insurers can pursue separate recovery actions, while the criminal court will address detention, discovery and pretrial motions before any trial or negotiated resolution. The indictment’s dollar figure therefore describes alleged billing activity and should not be presented as a final judicial loss finding. [1] [2]
Sources & further reading
- Jacksonville Pharmacy Owner and Accountant Indicted in $51 Million Health Care Fraud Scheme ↗U.S. Attorney’s Office, Middle District of Florida · 2026-11-12 · Primary source
- U.S. Attorneys say Jacksonville pharmacy owner bilked insurers $51M in meds scheme ↗Action News Jax · 2026-11-12
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