Pharmacy CEO at Center of Kickback Scheme Rewarded With $130M Payout

Last Updated Sep 22, 2010 6:29 PM EDT

You've probably never heard of Omnicare (OCR), so you're probably not interested in knowing that the company just paid $21 million to Michigan and Massachussetts to settle allegations that it overcharged Medicaid. But you should be: Omnicare is a massive provider of pharmacy services to old people's homes and senior care facilities, and this settlement is merely the tip of the iceberg.

If there were any justice, Omnicare CEO Joel Gemunder would be squirming under the bright lights of 60 Minutes' cameras, trying to explain the company's various drug price schemes. On his watch, Omnicare has paid out $168.5 million in legal settlements for various kickback schemes it was involved with. Among them:

Given all that, you'd think Gemunder would be facing prosecution, maybe even jail time. Wrong! He just quit his job and left the company with a record $130 million -- one-hundred-and-thirty million! -- retirement payout. I guess the "lesson" here is that if your lawyers can dribble out settlements one by one, in different jurisdictions, then you can fly under the radar and still get rich.

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Image by Flickr user quaziefoto, CC.