Jacksonville Pharmacy Owner Charged in $51M HIV Drug Fraud Scheme

A Jacksonville pharmacy owner and a local accountant have been indicted in what federal prosecutors describe as a $51 million health care fraud and money laundering scheme that allegedly used offers of free government cellphones to collect insurance information from low-income residents, according to the U.S. Attorney’s Office for the Middle District of Florida.

FBI Jacksonville said in a post on X that its special agent in charge joined the U.S. attorney for a press conference to announce the charges against the pharmacy owner and accountant. U.S. Attorney Gregory W. Kehoe announced the case, according to the office’s release.

#FBI Jacksonville SAC Carley joined the U.S. Attorney for the MDFL for a press conference to announce charges against a Jacksonville Pharmacy Owner and Accountant who were indicted in a $51 Million Health Care Fraud Scheme. They're accused of taking part in a scheme involving… pic.twitter.com/xIbWNNBKb4

— FBI Jacksonville (@FBIJacksonville) November 12, 2026

Charlie Bernard Griffin III, 61, of Jacksonville, was charged in a 31-count federal indictment with health care fraud and money laundering, according to the U.S. Attorney’s Office. Ethelbert Chinenye Nwanegbo, 47, of St. Johns, was charged in the same indictment with money laundering, the office said. Each faces a maximum of 20 years in prison on each count, according to the release.

Free phones, then prescriptions

According to the indictment as described by prosecutors, Griffin owned First Coast Community Development, which operated a pharmacy in Jacksonville, and entered into an agreement with a marketing company owned by Jonathan Gholston to refer people for HIV post-exposure prophylactic medications.

Marketing representatives set up tents and tables in Jacksonville, generally in low-income areas, and offered free government-sponsored cellphones to anyone who stopped and gave identifying information, the U.S. Attorney’s Office said. While collecting that information, the representatives also gathered health insurance details, including whether the person was covered by Medicare, Medicaid or a private insurer, according to the release.

Prosecutors said the pharmacy paid the marketing company $200 for each person referred for HIV medications, but only if Medicare, Medicaid or a private insurer paid the claim. The marketing company in turn usually paid its representatives $50 per referral on the same condition, according to the release. Prosecutors said a per-referral payment that depends on a claim being paid is an illegal kickback.

The pharmacy then used the information to generate prescriptions authorized by Rashan Jones, a nurse practitioner who had never seen, spoken with or examined the people the prescriptions were issued to, according to the indictment as summarized by prosecutors. Prosecutors allege the pharmacy used a false diagnosis code indicating the patients had, or had been exposed to, HIV or a sexually transmitted disease so the claims would be paid.

Millions in alleged proceeds

The scheme caused tens of thousands of fraudulent claims and about $51 million in reimbursements from Medicare, Medicaid and private insurers, with Griffin receiving about $14 million, according to the U.S. Attorney’s Office. Action News Jax reported that Nwanegbo allegedly laundered the funds for a 10% cut.

The government is seeking forfeiture of $14,245,474 it says represents Griffin’s health care fraud proceeds, along with about $8.2 million seized from his bank accounts, three real properties and four vehicles prosecutors say he bought with fraud proceeds, according to the release.

Gholston, pharmacist Albert Chester and Jones were previously charged in separate cases and have each agreed to plead guilty, according to Florida Voice News. Jacksonville News Now also reported on the indictment.

An indictment is merely an allegation, and Griffin and Nwanegbo are presumed innocent unless proven guilty in court.

Reporting by Daily Beltway.