HOUSTON, TX — Two Houston area men face new charges in nationwide pharmacy health care fraud scheme that that targeted elderly citizens, announced U.S. Attorney Jennifer B. Lowery.
Mohamed Mokbel, 57, and Fathy Elsafty, 63, both of Houston, are expected to make their initial appearances before U.S. Magistrate Judge Yvonne Ho today at 2 p.m.
The 18-count superseding indictment, returned July 20, alleges that from 2013 to January 2022, Mokbel and ElSafty conspired to commit a $150 million mail fraud and health care fraud scheme and engaged in money laundering with the fraud proceeds. Mokbel is also alleged to have continued the fraud scheme at MK Pharmacy, a Houston area pharmacy, from April 2021 through January 2022. During this time, he had been permitted release on bond after the return of the original indictment in March 2021.
Mokbel was the CEO of 4M Pharmaceuticals Inc., according to the charges. With ElSafty’s assistance, he allegedly acquired and controlled over a dozen pharmacies that operated in Houston and elsewhere. The indictment alleges Elsafty served as 4M’s accountant and tax preparer and had ownership interests in several pharmacies located in California, Texas and Florida. ElSafty allegedly aided Mokbel by falsifying corporate filings and concealing Mokbel’s involvement in the pharmacies.
The fraud was pervasive and carried out using a sophisticated mass marketing scheme targeting individuals over the age of 55 using telemarketing and mail,…
