Jacksonville marketing company owner Jonathan Simeon Gholston pleaded guilty in a Medicare and Medicaid fraud case.
The scheme involved illegal kickbacks for referrals of HIV prophylactic medications.
Marketers collected personal data while offering free government cellphones.
A nurse practitioner issued prescriptions without examining the patients.
Over 20,316 fraudulent claims were submitted to federal health programs.
The fraud caused about $24.2 million in losses to Medicare and Medicaid.
Gholston received around $2.27 million and agreed to forfeit the amount.
He faces up to five years in federal prison.
Under the arrangement between Gholston’s marketing company and the pharmacy, the pharmacy paid the company $200 for each person referred for HIV medication, but only if Medicare or Medicaid paid the claim.
The marketing company then paid its marketers about $50 per referral when the claim was successfully reimbursed by federal healthcare programs.
Federal law prohibits such payments because compensation tied to successful medical claims is considered an illegal kickback. A Jacksonville marketing company owner has pleaded guilty to participating in a healthcare fraud scheme that defrauded Medicare and Medicaid of more than $24 million, U.S. federal prosecutors announced on March 3, 2026.
Jonathan Simeon Gholston, 35, of Jacksonville, Florida, admitted to conspiring to receive illegal kickbacks in exchange for referring Medicare and Medicaid beneficiaries for HIV prophylactic medications, according to the U.S. Attorney’s Office for the Middle District of Florida.
Gholston faces up to five years in federal prison. A sentencing date has not yet been scheduled. The announcement was made by U.S. Attorney Gregory W. Kehoe.
According to court documents and the plea agreement, Gholston owned and operated a marketing company that partnered with a Jacksonville pharmacy to promote HIV post exposure prophylactic medications, commonly known as PEP, which are drugs taken after potential HIV exposure to prevent infection.
Instead of legitimate outreach, the company used deceptive tactics to collect personal and insurance information from unsuspecting individuals.
Representatives working for the marketing company set up tents and tables in different areas of Jacksonville, often near storefronts and typically in low income neighborhoods. They offered passersby free government sponsored cellphones in exchange for providing personal information required to obtain the phones.
While gathering these details, marketers also collected health insurance information, including whether individuals were enrolled in Medicare or Medicaid. Many people believed they were only signing up to receive the free phone and did not request or consent to HIV medications.
Under the arrangement between Gholston’s marketing company and the pharmacy, the pharmacy paid the company $200 for each person referred for HIV medication, but only if Medicare or Medicaid paid the claim.
The marketing company then paid its marketers about $50 per referral when the claim was successfully reimbursed by federal healthcare programs.
Federal law prohibits such payments because compensation tied to successful medical claims is considered an illegal kickback.
Investigators said the collected information was forwarded to the pharmacy, which used it to generate prescriptions for HIV prophylactic medications.
The prescriptions were authorized by a nurse practitioner who had never examined, spoken with, or evaluated the patients.
The pharmacy filled the prescriptions and submitted reimbursement claims to Medicare or Medicaid. Each approved patient generated approximately $4,000 per month in reimbursements from federal healthcare programs.
During the investigation, law enforcement interviewed numerous individuals who received HIV medications without requesting them or consenting to treatment.
Authorities said that in some cases the medications could have posed serious health risks for individuals with certain medical conditions.
Authorities said the scheme resulted in about 20,316 fraudulent claims submitted to Medicare and Medicaid.
Financial losses included $11,681,479 reimbursed by Medicare and $12,536,267 reimbursed by Medicaid.
Together, the scheme caused approximately $24,217,746 in losses to federal healthcare programs.
From the fraud scheme, Gholston personally received about $2,273,000. As part of his plea agreement, he has agreed to forfeit the money to the United States.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services Office of Inspector General.
Assistant United States Attorney Arnold B. Corsmeier is prosecuting the case, while Assistant United States Attorney Jennifer Harrington is handling the forfeiture proceedings.
