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Mississippi man in health care fraud arrested for violating bail terms

GULFPORT, Miss. (AP) — A Mississippi man convicted in a $200 million pharmacy fraud has been arrested for violating the terms of his bail.

Federal court records show Gerald “Jay” Schaar was arrested Wednesday in Gulfport.

Schaar pleaded guilty to health care fraud charges last year, admitting he solicited health care providers to prescribe medicines. Pharmacists engineered hand-made medicines to yield high profits, although prescribers often hadn’t examined patients and patients may have gotten no medical benefit.

Court papers don’t say what Schaar did to violate release terms and his lawyer didn’t immediately respond to an email Thursday. Schaar could have to pay the $25,000 he pledged to secure his release and face additional criminal penalties.

A judge will hear evidence against Schaar Aug. 6 in Gulfport. He’s scheduled to be sentenced Aug. 21.