Ex-North Hills pharmacy owner, druggist charged with $1 million in fraud

The former co-owner of a North Hills pharmacy and one of his pharmacists are charged with running a $1 million prescription drug fraud scheme.

William M. Sadowski, 43, of McKees Rocks, the former co-owner of Servatus Pharmacy, and Eric J. Miladin, 43, of Monaca, are accused of conspiring to fabricate nearly $1 million worth of prescriptions that were never given to patients, state Attorney General Tom Corbett said Tuesday.

The men, who surrendered to authorities Monday, are accused of using the names of patients at the Allegheny Valley School, which is a facility for individuals with intellectual and developmental disabilities, and inmates at the Beaver County Jail to submit false claims.

According to a criminal complaint, Sadowski conspired to submit false claims to the state Medicaid program and private health insurance companies for high-cost medications that were supposedly given to patients at the Allegheny Valley School.

Sadowski also is accused of submitting more than $645,000 worth of insurance claims for medications not prescribed by any doctors and not dispensed to any resident at the school in Robinson.

In addition, Sadowski is accused of submitting more than $180,000 in false claims to Highmark, using the names of employees who worked for neighboring businesses.

Investigators determined that these medications were not authorized by any doctors and that the drugs were not provided to any patients, Corbett said.

Sadowski and Miladin are accused of conspiring to use the names of inmates at the jail to submit false claims for drug rebates, using various coupons provided by prescription drug manufacturers.

At the time, Servatus Pharmacy in McCandless was contracted to provide emergency medication to the jail.

Corbett said Sadowski and Miladin also are accused of creating fictitious prescriptions and submitting claims for more than $155,000 in rebates for various medications.

Sadowski is charged with participating in a corrupt organization, submitting false claims, insurance fraud, theft and conspiracy. Miladin is charged with theft by deception and conspiracy.

Both are free to await a preliminary hearing scheduled June 3.