If you love Houston’s restaurant scene then it is highly likely that you have come across Phil & Derek’s Jazz Lounge & Restaurant owned by John Cruise and his spouse, LaShonia Johnson.
In addition to the restaurant John and Shon, served as co-proprietors of Assurance Consolidated Pharmacy in Spring, Texas.
(Cruise also held ownership of the Injured Federal Workers Advocate Association (“IFWAA”)
Sadly it is being reported that John has been sentenced to 20 years and his wife 15 years for fraud back in April.
The Scheme
According to the press release the defendants submitted false and fraudulent claims to the OWCP and TRICARE for prescriptions for compounded and other drugs prescribed to injured federal workers and members of the armed forces.
The defendants also paid kickbacks to patient recruiters and physicians to prescribe these drugs.
The defendants chose the particular compounds and other drugs based not on the patients’ medical needs but in light of the amount of reimbursement for the drugs.
The drugs were then mailed to patients, even though the patients often never requested, wanted, or needed them.
Everybody Involved
The press release lists nine defendants – including three compounding pharmacy owners, a physician, two pharmacists, and three patient recruiters – who were sentenced for their respective roles in a years-long, multi-state scheme to defraud the Department of Labor’s Office of Workers’ Compensation Programs (OWCP) and TRICARE, the health care program for U.S. service members and their families.
The sentences include:
John Cruise, 52, of Houston, a former co-owner of Assurance Consolidated Pharmacy (ACP), a pharmacy located in Spring, Texas, as well as an owner of the Injured Federal Workers Advocate Association (IFWAA), an organization that purported to assist injured federal workers, was sentenced to 20 years in prison.
LaShonia Johnson, 50, of Houston, a former co-owner of ACP with her husband and co-defendant Cruise, and director at IFWAA, was sentenced to 15 years in prison.
Kenny Ozoude, 48, of Houston, former owner of Compounding Solutions LLC, a Houston-based pharmacy, was sentenced to 10 years in prison.
James Don Jackson, 63, of Tyler, Texas, a medical doctor licensed in Texas, was sentenced to five years in prison.
Nirvana Hightower, 56, of Houston, a pharmacist licensed in Texas and pharmacist-in-charge at Compounding Solutions LLC, was sentenced to five years in prison.
Keith Hudson, 55, of Humble, Texas, a pharmacist licensed in Texas and pharmacist-in-charge at ACP, was sentenced to 3 years in prison.
Audra Jones, 46, of Houston, was sentenced to two years and six months in prison.
Terrance Aice, 50, of Carrollton, Texas, a patient recruiter, was sentenced to one year and six months in prison.
Sherod Johnson, 44, of Las Vegas, a patient recruiter, was sentenced to one year and six months in prison.
Twitter reaction:
I’ve seen several people share some posts about Phil & Derek’s that are not completely accurate.
Now, it is accurate that the owner (FORMER) was sentenced to 20 years in prison for financial fraud. He was sentenced back in April thoughhttps://t.co/luX4U3o4dn
— BlackGirlsWhoBrunch (@blckgirlbrunch) October 10, 2023
and
So maybe the pharmacy scheme kept the restaurant afloat.
BUT the biggest thing floating around is that Phil & Derek’s is closed. IT IS NOT. The owner changed in June. The previous owner likely is already serving his sentence and the business continues on.
— BlackGirlsWhoBrunch (@blckgirlbrunch) October 10, 2023
and
So Phil and Derek’s owners were sentenced to 20 years for scamming back in April and we’re just finding out now 🫢
— Bola Maintain (@_lovebola) October 10, 2023
and
Damn! Phil and Derek’s owners caught up in $126m fraud scheme? pic.twitter.com/Yr3aqWwYUf
— Cee Cee (@SeedofKalahari) October 10, 2023
and
not the owner’s of phil & derek’s sentenced to 20 years in prison for fraud
— parcerita (@shaaadss) October 10, 2023
and
Man say, that Phil & Derek’s story is CRAZY!!!!! The owners along with 7 other folks scammed $126,000,000
— Back Like I Never Left 😎 (@_iSpeakDaTruth2) July 19, 2023
