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Your Tax Dollars At Work: The Dept. Of Defense Was Paying $14,500 Per Tube For $30 Tubes Of Skin Cream

Bill Schneid stood in his home office, holding a package of skin cream worth more than gold. He didn’t know exactly what he had stumbled on, but he was pretty sure it was illegal.

It was March 2015. A few weeks before, Schneid, 72, a curmudgeonly private investigator, had been snooping around Southern California military bases when a Marine he knew mentioned he had a strange source of side income.

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. When the creams arrived in the mail, the Marine didn’t actually use them.

Suspicious, Schneid launched a ruse to investigate, persuading the Marine to reroute the shipments to his house. Soon, Schneid received a shoebox-sized parcel that held several tubes of cream about the same size and consistency as sunscreen that was supposedly used to treat pain and scars.

This medicine had been prescribed, supplied and delivered seemingly for no reason at all. Nobody needed it. Nobody wanted it. So what was the point?

It turns out that the Tennessee doctor, his posse, & the Utah pharmacy were charging the Department of Defense $14,500 PER TUBE for a basic skin cream you can get on Amazon for $30…. They did this so often they made $65 MILLION off of it… and who covers that cost? You! The taxpayer.

This kind of fraud is so common that in a report, former Tricare chief Maj. Gen. Richard Thomas said we’re on track to spend over $2 BILLION unless they get a handle on it.

You can hear more about it on this week’s special Valentine’s episode of ZeroBlog30. It’s sure to make you cream.

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