HARRISBURG — Attorney General Dave Sunday announced that the two leaders of a $12 million Medicaid Fraud scheme involving Broad Street Pharmacy in South Philadelphia have pleaded guilty and were sentenced this week to state prison.
An Office of Attorney General-led collaborative investigation resulted in prison sentences for Peter Dello Buono — who managed daily operations — and Frank Bengermino, the in-store pharmacist.
Dello Buono, 70, will serve 2 to 5 years in state prison; is prohibited from owning, operating or working at a pharmacy; and is excluded from the Medicaid and Medicare programs.
Bengermino, 70, will serve 1½ to 5 years in state prison, and abide by the same other conditions as Dello Buono.
The scheme was based on billing expensive medications to Medicaid and Medicare, even though very little of the medications were actually acquired and disbursed at the pharmacy.
“This was a years-long conspiracy that defrauded state and federal programs designed to help people and families in need, and ripped off taxpayers who fund those programs,” Attorney General Sunday said. “This criminal enterprise prioritized personal greed over the wellbeing of Pennsylvanians. I credit our team, the grand jurors, and investigative partners for seeing this case through to a just resolution that sends a message that Medicaid Fraud is far from a victimless crime.”
Last year, the Fiftieth Statewide Investigating Grand Jury issued a presentment for the charges following a joint investigation conducted by the Pennsylvania Office of Attorney General Medicaid Fraud Control Section and the U.S. Department of Health and Human Services Office of Inspector General.
In all, nine people were charged last year — seven pleaded guilty this week.
Elizabeth Thompson, 70, owner of Broad Street Pharmacy (and Dello Buono’s wife), will serve four years of probation, and abide by the same conditions as her husband.
Dello Buono and Thompson are responsible for $12.25 million in restitution, the judge ordered.
The conspiracy also involved paying kickbacks to consumers selling back pills to the pharmacy in exchange for cash and other medications.
The total amount of fraudulent claims — primarily for the antipsychotic, Latuda, and several high-reimbursement HIV medications — exceeded $12 million.
Also charged were: Berry Davis, 59; Brian O’Hara, 52; Michael McCue, 68 — all of Philadelphia; Christian Bengermino, 36, of Folsom; and Evan Gusz, 54, of Glenside, with Medicaid fraud, dealing in unlawful proceeds, theft by deception, conspiracy, and other offenses.
Angelo Amorosi, 62, of Philadelphia, was charged with dealing in unlawful proceeds and conspiracy.
All of the above defendants have pleaded guilty, with the exception of O’Hara and McCue, whose cases are still pending.
Broad Street Family Pharmacy was licensed to provide services to Medicaid and Medicare consumers. While Thompson owned the pharmacy, her husband (Dello Buono) operated it, even though his pharmacist license was previously suspended and he was not allowed to be a provider under the Medicaid and Medicare benefit programs. To circumvent this, Frank Bengermino, who possessed a valid pharmacist license, was the managing pharmacist at the pharmacy.
The pharmacy ceased operations and closed its doors shortly after agents executed a search warrant at the location in the autumn of 2021.
Investigators estimate that the involved medications – Latuda and HIV medications – accounted for approximately 86 percent of the Broad Street Family Pharmacy’s billings to Medicaid over the five-year period charged.
These cases are being prosecuted by Assistant Chief Deputy Attorney General Mark Levenberg. Criminal charges, and any discussion thereof, are merely allegations and all defendants are presumed innocent until and unless proven guilty.
The Pennsylvania Medicaid Fraud Control Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $12,839,940 for Federal fiscal year (FY) 2025. The remaining 25 percent, totaling $4,279,979 for FY 2025, is funded by Pennsylvania.
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