Felix Yue-Sing Chan appeals jail sentence for stealing $300k via false PBS claims

A trusted pharmacist who used the identities of real patients and doctors to steal nearly $300,000 via the PBS scheme is appealing his jail sentence.

EXCLUSIVE

Felix Yue-Sing Chan worked hard to buy three pharmacies to manage after 12 years in the industry, but his pride quickly turned to fear as increased competition and the Covid-19 pandemic left him drowning in financial stress.

Feeling “aggrieved” against the person who sold him the businesses, shopping centre management and Medicare, he felt “entitlement to artificially inflate his business performance”.

Over two years, he used the identities of real patients and doctors to steal $288,595 from the Australian government’s Pharmaceutical Benefits Scheme (PBS).

Chan’s fake PBS claims spanned three pharmacies and two years. Picture: Stock photo

That’s according to documents tendered to Sydney’s Downing Centre District Court as the 40-year-old appealed his two-year jail term for the crimes.

According to agreed facts tendered to court, Chan made 105 false PBS claims relating to 1070 pharmaceutical items at Ginninderra Pharmacy, Priceline Queanbeyan and Priceline Bungendore.

One medication he falsely claimed, a hepatitis C antiviral treatment called “Maviret,” cost nearly $19,000.

Chan lodged $56,435 worth of Maviret for two patients who never received it.

Two chemists Chan operated were of the Priceline chain. Picture: NCA NewsWire/David Geraghty

“The applicant knew on each occasion that he was making a false claim and used the real information of doctors and patients,” the facts read.

“The claims for payment were fraudulent because they sought payment for medications said to have been supplied by pharmacies operated by the applicant, when those medications had not been supplied”.

While many of the fake transactions went undetected, an issue with the unique prescriber details of certain general practitioners raised the eyebrows of health authorities.

Department of Health investigators obtained 13 statements from doctors whose details had been used by Chan to claim PBS benefits and discovered much of the medication had never been prescribed.

Chan used the details of real patients and doctors to carry out the offences. Picture: Alamy/Stock photo

Once arrested, Chan admitted the wrongdoing to police, saying he “took matters into his own hands” due to extreme financial stress and said there was “absolutely no excuse” for his wrongdoing.

He voluntarily provided them with documents which alerted them to even more fraud than they had caught themselves.

On November 10 last year, Chan was sentenced to two-years prison, to be released on recognisance after one year and two months.

He had pleaded guilty to three charges of obtaining benefits in respect of the supply of pharmaceutical benefits by means of false statements.

Chan’s lawyer, Peter Woodhouse, appealed the jail sentence on the grounds a community-based sentence and was not properly considered and the punishment was “manifestly excessive”.

He submitted an intensive correction order would have better reflected his prospects of rehabilitation and community safety.

But crown prosecutor Robert Ranken opposed the appeal, arguing the judge took the appropriate steps to decide the sentence and the appeal should be dismissed.

Justice Jeremy Kirk, Justice Stephen Rothman and Justice Natalie Adams reserved their judgment for a later date.