Pharmacist in jail for false PBS claims

Date of sentence: 2 February 2023

Court: County Court of Victoria

Partner Agency: Department of Health and Aged Care

Carson Au submitted 76 false Pharmaceutical Benefits Scheme (PBS) claims, was investigated, charged and pleaded guilty to one charge of Obtaining a Financial Advantage by Deception contrary to s134.2(1) of the Criminal Code and one further charge of Obtaining a Financial Advantage by Deception contrary to s134.2(1) of the Criminal Code on a 16BA Schedule.

On 2 February 2023, he was sentenced to of 2 years of imprisonment with 8 months to be served in custody before being released on a $5000 good behaviour bond for 2 years.

The matter

Between 25 February 2018 and 20 June 2018, Mr Au, a registered pharmacist and owner of Newton’s Pharmacy, used the prescriber details of 9 medical practitioners and personal details of 9 friends and family members, without their knowledge, to submit 71 false PBS claims. The claims were for pharmaceutical benefits never prescribed by the listed PBS prescriber and never provided to the listed patient.

Between 9 March 2018 and 29 June 2018, payments totalling $108,189.04 were deposited into Mr Au’s bank account.

Mr Au’s offences came to light when a supplier of pharmaceutical products that was subject to his claims, notified the Commonwealth through the Department of Health and Aged Care tip-off form. This triggered an investigation, upon which Mr Au in cooperation with authorities, made full and frank admissions to these claims. Between 18 August 2019 and 20 September 2019, Mr Au made 5 further false PBS claims in the name of family members amounting to payments of $2,272.64.

The CDPP prosecuted the matter following a referral from the Department of Health and Aged Care in October 2021.

The Department of Health and Aged Care has a zero-tolerance policy for those who seek to defraud the PBS system. As such, the Department has a wide range of compliance and enforcement powers to detect, investigate and punish those who are found to have committed fraud.

Mr Au was charged in January 2022 and pleaded guilty to Obtaining a Financial Advantage by Deception for this offence in June 2022.

The CDPP characterised Mr Au’s offending as a serious example of the offence against s134.2 of the Criminal Code, having regard to:

• The number of false claims over the period which were made.
• The use of personal details of family members and friends which potentially implicated them in his offending and violated their integrity.
• The significant amount of money involved.
• Further offending in 2019
• His position as an experienced pharmacist with ‘intimate knowledge of the PBS claim system’.
• Mr Au’s abuse of trust in the scheme as an approved pharmacist which necessarily relied on his honesty in submitting the claims.

Sentencing

The Court found that systematic frauds committed by professionals such as doctors and lawyers involving large sums of money are viewed as a particularly serious offence. They are an abuse of the privilege and responsibility that a member of a profession has and they can impact adversely on the reputation of the entire profession. The Court noted that this principle is applicable to pharmacists and considered that general deterrence can only be met by sentence of imprisonment with a requirement that a modest part of the sentence be served immediately.

Mr Au had pleaded guilty at the earliest stage of the sentence through co-operation with the investigation and in doing so, saved time and resources of the prosecuting authorities and spared witnesses the need to give evidence in court. He had also displayed deep remorse for his offences and experienced significant anxiety over this period.  With these factored in, a modest reduction was entitled of the sentence imposed.

As a result of the charges, Mr Au’s registration as a pharmacist has been suspended and he is currently in the process of selling the pharmacy. Mr Au has repaid the entire $110,461.68 to the Commonwealth. Mr Au was sentenced to a total effective sentence of 2 years of imprisonment with 8 months to be served in custody before being released on a $5000 good behaviour bond for 2 years.

The Department of Health and Aged Care and the CDPP have shown that they are committed to ensuring the integrity of the Pharmaceutical Benefits System and will take action against anyone engaging in fraudulent activities. 

Related links

Department of Health and Aged Care media release – Jail time for Pharmacist and Practice Manager