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New Berlin Pharmacy employees accused in massive drug fraud scheme over 6 years

MILWAUKEE -- Charges have been leveled against seven people for a massive pharmacy scheme that involved distributing drugs and defrauding insurance companies. The charges span six years, from 2010 to 2016.

The criminal complaint is 25 pages long. Prosecutors say the criminal activity started with the pharmacy tech, and when the pharmacist discovered it, he joined in too.

The complaint contains allegations of delivery of prescription drugs, insurance fraud, identity theft, stolen goods and more.

According to prosecutors, it all started with 42-year-old Jason Kilvinger, who owned the New Berlin Pharmacy on Greenfield Avenue in New Berlin. Prosecutors say he acted as a pharmacist, but was only a pharmacy tech.

He's accused of obtaining a prescription drugs, including hydrocodone, by "creating fraudulent scripts and using the names of 52 different doctors."

Then he allegedly "sold them, gave them away and provided them as payment for services." That included trading drugs for stolen merchandise.

FOX6 News went to his home in 2016, when the Waukesha County district attorney filed a lawsuit against the pharmacy. A sign told trespassers to keep out.

Robert Steib

Prosecutors allege he created fictitious people or used friends, family, former high school classmates, even "deceased and disabled individuals."

Between 2010 and 2016, the complaint says Kilvinger unlawfully diverted more than 80,000 hydrocodone pills; selling them for $500 to $750 a bottle.

When the pharmacist, Robert Steib, who is also charged, discovered 3,000 of the pills unaccounted for in 2011, he told investigators he turned a "blind eye."

The complaint says Steib joined Kilvinger in diverting drugs and running fake prescriptions to cash in on insurance money.

The other named suspects are accused of obtaining the prescription drugs by fraud.