In a startling case of deception, a Texas podiatrist and a patient recruiter have been sentenced to prison for their roles in an $8.5 million health care fraud scheme. The two men, Brian Carpenter, 58, and Jerry Lee Hawrylak, 71, orchestrated a plot to cheat TRICARE, the health care program designed to serve U.S. military service members, veterans, and their families.
Carpenter, a podiatrist from Paradise, Texas, and Hawrylak, a patient recruiter from Lake Worth, Texas, will now serve 45 months and 60 months in federal prison, respectively. The court has also ordered them to pay more than $7 million in restitution for the damage caused by their criminal activities.
How the Carpenter and Hawrylak Fraud Scheme Worked
Between November 2014 and January 2017, the pair masterminded a plan to prescribe and bill TRICARE for expensive compounded creams. These creams were intended for pain and scar treatment but were completely unnecessary for the patients involved.
Carpenter, the podiatrist, signed prescriptions for patients he had never spoken to, examined, or treated. In fact, many of the patients didn’t even know Carpenter existed. Evidence presented in court revealed that Carpenter signed “standing orders” for prescriptions, which meant that the pharmacy involved could keep billing TRICARE for refills without new approval. These orders were even backdated to help the pharmacy maximize its profits from TRICARE reimbursements.
Hawrylak’s role was to recruit TRICARE beneficiaries—people covered by the health care program—to accept these unnecessary prescriptions. He also worked to convince Carpenter to keep signing the fraudulent orders. The pharmacy used fake patient addresses and kept adding unauthorized refills to ensure more money flowed in from TRICARE.
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In total, the scheme led to fraudulent billing amounting to roughly $8.5 million. Carpenter and Hawrylak received kickbacks—illegal payments—from the pharmacy for their roles in this elaborate scam.
Evidence and Investigation
The crimes didn’t go unnoticed. Multiple federal agencies worked together to uncover the fraudulent activity. Investigators found fake addresses and uncovered the illegal backdating of prescription orders. They also exposed how Carpenter used his medical office as a cover for keeping the fake prescription paperwork.
In April 2023, both Carpenter and Hawrylak were found guilty by a jury in the Northern District of Texas. Both were found guilty of one count of conspiracy to commit health care fraud and six separate counts of health care fraud.
The case was investigated by a powerful team of agencies, including:
- The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS)
- The Department of Health and Human Services Office of Inspector General (HHS-OIG)
- The Federal Bureau of Investigation (FBI)
- The Department of Labor Office of Inspector General (DOL-OIG)
- The Department of Veterans Affairs Office of Inspector General (VA-OIG)
Federal prosecutors Brynn Schiess and Andrea Savdie from the Department of Justice’s Fraud Section led the case against Carpenter and Hawrylak. This case was one of many handled by the Health Care Fraud Strike Force, a nationwide program aimed at stopping crimes like this.
Since its creation in 2007, the Strike Force has prosecuted over 5,400 people who, collectively, have stolen more than $27 billion from federal health care programs like TRICARE and Medicare. This program works alongside the Centers for Medicare & Medicaid Services to ensure that providers who participate in fraud are held accountable.
Justice Served
In the end, the court handed down significant sentences: 45 months in prison for Carpenter and 60 months for Hawrylak. The pair was also ordered to repay more than $7 million in restitution to TRICARE. This case serves as a reminder of the serious consequences of committing health care fraud and the importance of protecting programs meant to serve those who have served our country.
By working together, federal agencies ensured that justice was served in this $8.5 million fraud case, which left military families and veterans’ health care programs exploited for personal gain.
