A man who pleaded guilty to trying to structure cash deposits to hide them from the Internal Revenue Service may have been getting some of the cash from a Denton doctor suspected in a pill mill, according to federal officials and court documents.
Linus Nwosu, of Southlake, pleaded guilty in June 2013 to one count of conspiracy to commit structuring. On Thursday, a judge ordered Nwosu to surrender to the Bureau of Prisons Feb. 25 to begin serving a two-year sentence in federal prison as a result of a plea agreement, a news release from the U.S. attorney’s office says.
Nwosu and his wife, Dorothy, own and operate two pharmacies in North Texas under the name GeneRx Discount Pharmacy, Inc., the release says. Between about Oct. 12, 2011, and May 16, 2012, Nwosu and his wife agreed to structure cash deposits from the pharmacies to circumvent federal currency reporting requirements, the release says.
During that period, Nwosu and his wife made about 77 cash deposits divided into totals of less than $10,000, the amount that triggers banks to make reports to federal officials, the release says.
According to the IRS, whose agents investigated the case, some of the cash flowing into the Nwosus’ pharmacies in Irving and Carrollton came from Ramon Cruz, a doctor who is being investigated for his involvement in a pill mill, fraudulently and unnecessarily writing prescriptions for narcotics.
The GeneRx Carrollton location’s cash sales between January and September 2011 averaged about $16,500, according to the IRS. Cash sales increased to more than $67,000 in October 2011, $64,000 in November 2011 and $34,000 in December 2011, a court document says.
The GeneRx cash sales at the Irving location averaged about $3,300 between January and September 2011, the verification affidavit says. But those cash sales increased to more than $10,500 in October 2011, $56,500 in November 2011 and $17,900 in December 2011, the affidavit says.
According to the affidavit, GeneRx’s Irving location filled 902 prescriptions for Cruz’s patients between Oct. 31, 2011, and Feb. 24, 2012; and at the Carrollton location nearly 2,200 between Oct. 22, 2011, and March 8, 2012.
The increases in cash sales parallel the Nwosus’ involvement with Cruz, whose certification to write prescriptions recently was revoked, according to the affidavit. Nwosu has agreed to amend his taxes and has forfeited more than $476,000 to the federal government, the release says.
Mitch Mitchell, 817-390-7752