A former Lexington pharmacy owner accused of stealing $1.1 million from a charity that helps with patients’ medication costs has been sentenced to six years and three months in prison.
Adam K. Sloan agreed as part of his guilty plea to pay $815,168 to the charity, representing the amount he was charged with stealing minus more than $313,000 from his bank accounts that the government seized, according to court records.
Jennifer Houska, who worked for Sloan for a time at Bluegrass Pharmacy of Lexington LLC, was sentenced to 2 1/2 in prison for aiding in a few of the thefts.
U.S. District Judge Danny C. Reeves sentenced Sloan and Houska on Saturday in federal court in Lexington.
The indictment said Sloan co-owned the pharmacy from October 2010 through June 2015.
Sloan admitted that he used personal information from customers to defraud a Texas-based charity called Chronic Disease Fund, which did business as Good Days from CDF.
The charity helps people pay out-of-pocket costs for medicine.
Sloan applied for funding for patients without their knowledge, then took the money Good Days provided, according to a court record.
The patients Sloan fraudulently enrolled did not receive the medication for which Good Days authorized funding, according to Sloan’s plea agreement.
Sloan left the pharmacy in mid-2015, but continued submitting fraudulent applications to Good Days using fictitious names and information.
Sloan submitted a total of 260 fraudulent applications to the charity, according to his plea agreement.
Houska, Sloan’s girlfriend, helped submit applications in 26 cases, according to a court record.
Sloan, 37, pleaded guilty to charges involving wire fraud, money laundering and aggravated identity theft.
Houska, 30, pleaded guilty to aiding in wire fraud and identity theft.
In letters to Reeves, relatives and friends described Sloan as a bright, hard-working man who was raised in a Christian home and started his business with a desire to help people, but took a disastrous turn because of alcohol abuse and a gambling problem.
Since being charged, he has worked steadily as a salesman, sought treatment for his addictions and re-committed himself to Christ, according to letters and a court document.
Sloan helps lead worship sessions and counsels people with gambling problems, according to letters and a court document.
“Adam Sloan had so much and through his own self-destructive behavior lost it all. In that loss he found himself again and now faces the court a better person than he had ever been,” Sloan’s attorneys, James I. Lowry IV and Kathryn Walton, said in a court motion.
Reeves sentenced Sloan to 51 months in prison on the money-laundering and fraud charges — the lowest sentence under advisory sentencing guidelines — and 24 months for identity theft.
The law requires a minimum two-year sentence on identity theft in addition to any sentence on other charges.
Houska’s attorneys, R. Michael Murphy and Jarrod James Beck, said in a court document that she had followed the law and worked hard all her life, and that she got involved in the fraud after Sloan pleaded for her help because he was deep in debt.
Her involvement was limited to completing documentation on some applications at Sloan’s direction, her attorneys said.
Houska was baptized earlier this year and is using her experiences to help others, according to letters submitted to Reeves.
Reeves sentenced Houska to two years on the identity-theft charge and six months for aiding wire fraud.
Reeves granted a request to sentence Houska on the wire-fraud charge to less time than the 15 to 21 months outlined by the guidelines, Murphy said.
Reeves also ordered Houska to pay $5,000 in restitution.
Reeves directed Sloan and Houska to report to prison Sept. 26. The federal Bureau of Prisons will designate a prison.