ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

ESI has indicated that it will not release any of the $3.55 million being held and, in addition, has demanded repayment of $12,155,159.97 almost all of which is due to the claimed “invalid Patient/Prescriber Relationship”. Finally, ESI has terminated Main Avenue’s Network Provider Agreement/Status.

So nearly $16M of fraudulent prescriptions over the course of 15 months from this "physician". That's a little over $1M/month.

Once SCRC lost CVS Caremark, the average monthly "approved orders" beginning Q2'15 was only approx $1.5M. This means that SCRC only has approx $500k/mo of potentially "untainted" revenues from Main Ave. That comes out to only $6M/year. Not good, considering the fixed operating expenses and debt service costs SCRC has -- which isn't even factoring in yet the variable costs related to COGS, Selling Expenses, etc.

CVS Caremark was the #1 Pharmacy Benefits Manager (PBM) in the country. Guess who was #2? Yup -- Express Scripts. Having the two largest PBM's in the country both revoke their agreement to conduct business with SCRC/Main Avenue certainly raises major red flags and significantly increases the investment risk for shareholders.

Do you think that it is merely a coincidence that this fraudulent physician began "operations" at essentially the same time that Adam Brosius came onboard? The same Adam Brosius who had ZERO prior industry experience but somehow appointed to be President of SCRC? The same Adam Brosius whose only experience was a failed sales/marketing venture? The same Adam Brosius whose Black Cat Consulting firm was one of the non-disclosing Section 17(b)-violating paid promoters engaged by SCRC along with JOESPH ZAMPETTI and the CORE to pump the living daylights out of SCRC?

As shareholders, we should be demanding that SCRC account for the commissions and other selling expenses that were paid out in relation to these fraudulent prescriptions, and demand that SCRC claw them back from Adam and the other middlemen who were clearly not entitled to them...