$51 Million Healthcare Fraud: Two Florida Residents Face Federal Charges

Federal authorities announced the charges on November 12, following an investigation involving the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS) Criminal Investigation Division, and the U.S. Department of Health and Human Services Office of Inspector General.

The indictment names Charlie Bernard Griffin III, 61, of Jacksonville, and Ethelbert Chinenye Nwanegbo, 47, of St. Johns, Florida.

Griffin faces a 31-count federal indictment involving healthcare fraud and money laundering, while Nwanegbo has been charged with money laundering.

How Did the Alleged $51 Million Fraud Scheme Work?

According to federal prosecutors, Griffin owned First Coast Community Development, a company that operated a pharmacy in Jacksonville.

Investigators allege that the pharmacy entered into an arrangement with a marketing company to recruit people for HIV post-exposure prophylaxis (PEP) medications.

Marketing representatives reportedly set up tents and tables, particularly in low-income neighborhoods, offering free government-sponsored cellphones to people who provided their personal information.

However, prosecutors allege that representatives also collected health insurance information, including details about Medicare, Medicaid, and private insurance coverage.

The information was then allegedly used to generate prescriptions for HIV-related medications without proper medical evaluations.

Patients Allegedly Received Medications Without Medical Evaluations

According to the indictment, prescriptions were authorized by a nurse practitioner who allegedly had never met, spoken with, examined, or tested the individuals listed in the medical records.

Prosecutors further allege that false medical diagnosis codes were used to make insurance claims appear legitimate.

The pharmacy allegedly submitted claims to Medicare, Medicaid, and private insurance companies for the medications and received reimbursement.

Authorities say the alleged operation generated tens of thousands of fraudulent claims, resulting in approximately $51 million in insurance reimbursements.

Accountant Accused of Money Laundering

The indictment also alleges that accountant Ethelbert Chinenye Nwanegbo helped move the proceeds through multiple bank accounts under his control.

According to prosecutors, the money was transferred between accounts before being returned to Griffin and another alleged participant through bank transfers and cash payments.

Investigators allege that Nwanegbo retained approximately 10 percent of the money as a fee for his role in the transactions.

Millions of Dollars in Assets Could Be Seized

Federal prosecutors are seeking the forfeiture of millions of dollars allegedly connected to the scheme.

The government is seeking approximately $14.2 million in alleged fraud proceeds and more than $17.8 million connected to money laundering offenses involving Griffin.

Authorities also seek forfeiture of approximately $8.18 million already seized from Griffin's bank accounts, along with three properties and four vehicles allegedly purchased with fraud proceeds.

In Nwanegbo's case, prosecutors are seeking approximately $6.06 million connected to the alleged money laundering activities.

What Penalties Could They Face?

According to the Justice Department, both defendants face a maximum possible sentence of up to 20 years in federal prison on each count if convicted.

However, the actual sentences, if any, would be determined by the court.

Three other individuals connected to the alleged scheme—Jonathan Gholston, Albert Chester, and Rashan Jones—were previously charged separately and have agreed to plead guilty.

Federal Agencies Continue Investigation

The investigation was conducted by the FBI and the Department of Health and Human Services Office of Inspector General, with assistance from IRS Criminal Investigation.

Federal officials say the case highlights ongoing efforts to combat healthcare fraud and protect public resources.

The allegations have raised concerns about the misuse of personal information, healthcare insurance systems, and programs intended to support vulnerable communities.

All defendants are presumed innocent unless proven guilty in court.