FAYETTEVILLE, Ark. — The owner and former chief executive officer of a Rogers-based medical supply company were sentenced to federal prison and ordered to forfeit millions of dollars for billing fraud.
According to federal court documents, Hunter Burroughs and Stephen Andrews took a plea deal on federal charges in the U.S. Western District Court of Arkansas in the Fayetteville Division on Jan. 23.
The charges originated from kickback schemes involving several doctors and medical clinics, which defrauded both federal and private workers' compensation insurers until around 2017.
Burroughs, who was the founder and owner of Common Compound, Inc. (CCI), was sentenced to four years in federal prison, 3 years of supervised release, and ordered to pay a $25,000 fine and $3.5 million restitution.
Andrews, who was the former CEO of CCI, was sentenced to 2 years and 8 months in federal prison with 3 years of supervised release and ordered to pay $2.3 million restitution.
CCI was a Rogers-based corporation established in 2011 that sold healthcare providers and medical clinics topical medications. These medical clinics sold the medication by prescription.
According to the lawsuit filed on Feb. 22, 2022, CCI "billed that medication to various workers' compensation insurers on behalf of the healthcare provider or medical clinic."
While Burroughs was the sole owner of CCI between 2013 and 2017, Andrews started at CCI as a sales manager in 2013. In 2015, Andrews was promoted to CEO and held that position until 2018.
Andrews' responsibilities included recruiting and managing sales representatives and operations of CCI.
According to the lawsuit, "Andrews assisted Burroughs in managing CCI."
The lawsuit accused Andrews and Burroughs of conspiracy to commit health care fraud, two counts of conspiracy to commit wire fraud, and eight counts of wire fraud.
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