The Pentagon blew $65 million on fake scar cream nobody wanted

Bullet Points

A former Marine helped recruit service members for a scheme to bilk the Department of Defense for cash by purchasing tubes of scar cream that did nothing to treat scars for insane prices, according to a remarkable investigation by the Nashville Tennessean.


  • Two doctors and a nurse at the Tennessee clinic have already pleaded guilty to defrauding Tricare to the tune of $65 million, while several other suspects, including the former Marine and employees at a Utah-based pharmacy, have already admitted to their role in the scheme.
  • The scam itself was simple, according to the Tennessean: "The Marine was being paid to get medicine he didn't need. A Tennessee doctor he had never met wrote him a medicinal cream prescription, which was being filled by a pharmacy in Utah. The military covered the bill and the Marine got a cash kickback from somebody."
  • The medicine Mederma, supposedly used to treat pain and scars, runs for about $30 a tube on Amazon; according to the investigation, the Tennessee pharmacy was prescribing the stuff to Marines at $14,500 a tube as far back as 2015.
  • Court documents reviewed by The Tennessean indicate that the recruiters, led by former Marine Joshua Morgan, "targeted Marines around Camp Pendleton, often by convincing the Marines they were joining a drug trial for the pain and scar creams. Marines were paid about $300 in illegal kickbacks each month," according to the investigation.
  • According to a 2015 CBS News report, the scar cream scheme succeeded by exploiting a loophole in Tricare regarding "compounded" medications which rely on mixing several medicines into a single treatment — medications that were fully covered by Tricare despite the absence of formal reviews of their effectiveness by the Food and Drug Administration
  • "We're on track this year to spend over $2 billion unless we get our hands around this," former Tricare chief Maj. Gen. Richard Thomas said in the 2015 CBS report. "It's just been astronomical, an explosion of the charges in a relatively short period of time."

SEE ALSO: Texas Woman Pleads Guilty In Multi-Million Dollar Tricare Fraud Scheme

(Reuters/Henry Nicholls)

WASHINGTON (Reuters) - The U.S. Justice Department unveiled 17 new criminal charges against WikiLeaks founder Julian Assange on Thursday, saying he unlawfully published the names of classified sources and conspired with and assisted ex-Army intelligence analyst Chelsea Manning in obtaining access to classified information.

The superseding indictment comes a little more than a month after the Justice Department unsealed a narrower criminal case against Assange.

Read More Show Less

The F-35 Joint Strike Program may be the most expensive weapons program in modern military history, but it looks as though the new border wall is giving the beleaguered aircraft a run for its money.

Read More Show Less

NAVAL BASE SAN DIEGO — Three members of the defense team for Navy SEAL Chief Edward "Eddie" Gallagher were revealed on Wednesday to have close ties to the Trump administration amid reports the president is considering the veteran Navy SEAL for a pardon on Memorial Day.

President Donald Trump's personal attorney, Marc Mukasey, 51, and longtime Trump associate Bernard Kerik, 63, a former New York City police commissioner, have joined Gallagher's defense team in recent months, both men told Task & Purpose on Wednesday.

Meanwhile, in response to a question from a reporter after a motions hearing, lead defense attorney Tim Parlatore confirmed that he had previously represented Pete Hegseth, the conservative Fox News personality who has been privately lobbying Trump since January to pardon Gallagher, according to The Daily Beast.

Read More Show Less
(DoD photo by Claudett Roulo.)

Former Navy SEAL Eric Greitens, who resigned in disgrace as governor of Missouri last year, is putting his uniform back on — just not as a Navy SEAL.

Greitens, who stepped down in May 2018 amid criminal charges related to an alleged extramarital affair, has become a reserve naval officer with Navy Operational Support Center — St. Louis, a spokeswoman for Navy Recruiting Command confirmed to Task & Purpose. The Kansas City Star first reported the news.

Read More Show Less
(Department of Veterans Affairs photo)

A Department of Veterans affairs employee allegedly placing cameras in the women's restroom of a VA office in Washington, D.C., NBC News reported on Thursday.

Read More Show Less