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The First All-Carbon Superyacht Ever Built Could Be Yours for a Cool $30 Million

And it comes with a matching 20-foot tender., rachel cormack.

Digital Editor

Rachel Cormack's Most Recent Stories

This sporty new 140-foot superyacht rocks the same metallic paint as your supercar.

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One of the most striking superyachts sailing the Seven Seas has just gone up for sale. Khalilah and her luxe gold exterior have been turning heads since 2015 and now the showstopper could now be yours for a cool $31 million.

But it’s more than shine and dynamic lines that render this vessel worthy of eight figures; Khalilah is a straight-up history maker. The 160-foot cruiser was the first all-carbon superyacht ever built.

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The handiwork of Palmer Johnson , the yacht’s carbon composite construction and revolutionary wave-penetrating hull means she can cruise at high speeds—26 knots being the top—with optimal fuel consumption. Moreover, there’s no need for zero speed stabilizers thanks to her 35-foot beam.

Onboard, Khalilah can accommodate up to 11 gilded guests within five well-appointed staterooms. The suitably opulent master suites are situated on the main deck and feature full-length windows that afford panoramic vistas. Elsewhere on this level is a generously sized living space and salon featuring a contemporary LED light installation, an ultra-modern galley, an alfresco dining area—complete with a bespoke cactus wood dining table—and vast aft deck.

“Khalilah” superyacht  Courtesy of SuperYachtsMonaco

Set on the upper deck is the hip skylounge. Perfect for after-hours socializing, the space is equipped with a high-tech entertainment system, overhead lights and comfortable lounges where you can while away the evening. Just ahead of the skylounge, you’ll find a sheltered terrace with a sunken spa pool to accommodate a late-night dip.

To top it all off, Khalilah comes packed with a matching 20-foot tender—dripping in gold, of course—as well as an array of water toys, including a jet pack, hoverboard, wakeboard, jet skis, kayaks, paddle boards and inflatables.

Exclusively for sale with SuperYachtsMonaco , the superyacht has an asking price of roughly $31 million (€28.5 million). If the festive season has you watching your shekels, you can also charter the superyacht.

Check out more photos of Khalilah below:

Courtesy of SuperYachtsMonaco

Rachel Cormack is a digital editor at Robb Report. She cut her teeth writing for HuffPost, Concrete Playground, and several other online publications in Australia, before moving to New York at the…

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KHALILAH Yacht – The Incredible $30,000,000 Superyacht

Measuring a length of 48 meters KHALILAH yacht was built by the US shipyard Palmer Johnson in 2015 and is currently available for charter.

She has space for eleven guests in five cabins and is easily recognizable due to her golden finish.

KHALILAH yacht interior

All design stages, including the interior of the KHALILAH yacht, were completed by Palmer Johnson Yachts.

There are five cabins on board that can accommodate up to eleven guests. The KHALILAH yacht has twin master suites, one VIP cabin, and one double cabin, as well as a twin and an additional Pullman berth.

Nine crew members find space in cabins below deck. The KHALILAH yacht is often described as a family-friendly yacht with a lot of features that are adjusted to children including her unusual interior design. 

In addition to her wide selection of water toys, families will appreciate the cabin layout and the onboard jacuzzi.

The beach club is perfect for a quick swim before a delicious dinner prepared by the five-star chef on board KHALILAH.

The yacht has impressive underwater lighting, wifi, and an upscale entertainment system. The interior of the KHALILAH yacht was designed to be tasteful and contemporary.

The style is somewhat eccentric in places, with colorful patterns and unusual features like a squid-shaped lamp in the main salon.

This is yet another aspect in which KHALILAH is an excellent yacht for families and not a conventional charter vessel.

Palmer Johnson gave her a unique interior to set KHALILAH apart from other superyachts and to match her already prominent exterior.

The furnishings of the yacht also have a distinct south-east Asian influence, with several buddha statues spread throughout the vessel.

Several cabins have intricate wood carvings decorating the walls, and there are traditional decorations and murals to be found onboard the luxury yacht.

Most notably, one of the bathrooms is entirely decorated with a colorful mosaic depicting cartoon-like sea animals, which is sure to be popular among children spending time aboard the KHALILAH yacht.

Other bathrooms are more minimalistic with white marble finishes and discreet mosaics of trees and other natural scenes.

Specifications

The KHALILA yacht is 48 meters (157.6 ft) long with an 11-meter (36.1 ft) beam and a 2.1-meter (6.11 ft) draft.

She is considered the world’s first all-carbon superyacht and is especially environmentally friendly with reduced emissions and exceptional fuel efficiency.

Both her hull and superstructure are built out of carbon, making her a lightweight vessel at only 485 tons.

She is powered by twin MTU engines which allow her to reach impressive speeds of up to 30 knots.

She comfortably cruises at 28 knots, making her one of the faster yachts in her size category.

Due to her highly efficient engines, she still has a range of 1,500 nautical miles and is the perfect yacht for visiting destinations in shallow waters due to her low draft.

The KHALILAH yacht is one of the most striking superyachts in the world and is guaranteed to draw attention wherever she goes with her pearlescent gold finish.

She is accompanied by a matching 6.8-meter (22 ft) gold tender, and her aerodynamic design gives her a sleek and elegant appearance.

On the aft, the yacht has a spacious swimming platform and storage area for water toys with an adjacent seating area with a beach club.

With her many floor-to-ceiling windows and large decks, KHALILAH perfectly merges indoor and outdoor living and provides guests with many choices for relaxing and enjoying the views.

One of her more unusual features is the custom extendable staircase that can be used to board guests and extend onto the water if requested as an unconventional seating area.

The exterior of the KHALILAH yacht was designed by Palmer Johnson Yachts , which is also the shipyard where the vessel was constructed. As a charter yacht, Khalilah has a fantastic selection of water toys on board to entertain her guests. There are jet skis, water skis, kayaks, paddleboards, and inflatables, all stored aft of the vessel.

The adjacent deck is exceptionally large and measures over 110 square feet giving guests plenty of space for sunbathing or exercising. 

The KHALILAH yacht has an estimated price of US $30 million. She generates annual running costs of approximately US $1 to $3 million.

Khalilah is available for charter at a weekly price of US $225,000 per week during both the winter and summer seasons. She is based in the Mediterranean and is primarily available for charter there. Khalilah is also available for sale at a listing price of US $28,5 million, although it is unclear whether a buyer has already been found. 

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A $30 million Instagram-famous superyacht in the Caribbean has installed Elon Musk's Starlink internet

• A $30 million superyacht has installed SpaceX's Starlink satellite internet.
• SpaceX CEO Elon Musk said the news was "cool" in a Twitter post.
• The captain told Teslarati that Starlink was a game-changer, but didn't work when crossing the Atlantic.

Starlink, SpaceX's satellite internet, is now up and running on an Instagram-famous $30 million superyacht based in the Bahamas and the Caribbean.

Teslarati first reported the news. The captain and a spokesperson for the yacht confirmed the news to Insider.

Motor yacht Loon, billed as the world's most Instagrammed superyacht with "seven star" service, switched to Starlink when the maritime version of the service was released in early July, Captain Paul Clarke told Insider.

Musk responded to the Teslarati article on Twitter, saying "cool." The billionaire is the founder of SpaceX, which owns Starlink. The company has more than 2,900 satellites currently in orbit, launched by SpaceX's Falcon 9 rockets.

Starlink Maritime on Loon costs $5,000 a month for consistent speeds, ranging from 150 Megabits per second to 200 Megabits per second, Clarke said. This is a drop in price from the yacht's previous internet service, Viasat, which charged $10,000 a month for speeds of 50 to 80 Megabits per second, Clarke added.

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"We've thrown everything we can at it, and it hasn't missed a beat," Clarke told Insider.

Clarke told Teslarati that Starlink was a "total game-changer" because every television on the 180-foot yacht is now able to stream in high-definition.

When Loon crossed the Atlantic Ocean, Starlink didn't work, Clarke told Teslarati. He reached out to Starlink's support team, who told him the service is expected to work in that area towards the end of the year, Clarke said in the interview.

Clarke plans to test Starlink when Loon crosses the Atlantic again in May next year, he told Teslarati.

A spokesperson for Loon told Insider the crew onboard the yacht have experienced good internet connection thanks to Starlink, saying their experience was "really positive."

The spokesperson added that Starlink has enabled the yacht's onboard videographer to share content "much more efficiently."

Loon has more than 62,000 followers on Instagram , where it posts scenic pictures of the yacht, crew, food onboard, and activities available during a charter. Clarke told Teslarati the yacht was worth $30 million. Loon can accommodate 12 guests and 14 crew and has an infinity pool, jacuzzi, and open-air bar, according to its website .

As Starlink expands its network, users across the world are reporting the different ways they are deploying Starlink. One user told Insider last week that he took Starlink on a week's sailing vacation to Greece and said the service was "surprisingly good."

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See Mark Zuckerberg’s glossy new $300M, 287-foot superyacht ‘Launchpad’

All aboard S.S. Facebook.

Mark Zuckerberg has reportedly gifted himself a $300 million megayacht, dubbed “Launchpad,” ahead of his 40th birthday.

The staggering 387-foot-long vessel was seen floating at Port Everglades in Fort Lauderdale, Fla., after arriving at its berth earlier this week, The Sun reported Thursday.

The multi-layered luxury ship’s sleek exterior was designed by Espen Øino International and boasts a steel hull and an aluminum superstructure, according to SuperYacht Times.

Reportedly ranking as the 45th largest yacht in the world, the interiors are just as aesthetically pleasing and reportedly executed by Zuretti Interior Design company, a France-based company specializing in unique and custom yacht design.

The breathtakingly beautiful floater stands out with a navy blue theme matching an American flag perched proudly on its wood-paneled stern.

There are several outdoor areas where the social media maven will be able to relax with his family and the indoor levels feature glass paneling allowing for tons of natural light.

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There also appears to be a helipad perfect for whenever the Facebook co-founder wants to travel to his vessel by air.

The Feadship-built yacht, built in 2022, can comfortably fit 24 guests aboard, requires a crew of 48, and is said to cost $30 million a year for upkeep and usage, according to Superyachtfan.com .

Boatworld insiders have been buzzing with speculation that Zuckerberg is the owner of the newly minted mega-cruise ever since it made its main voyage from the Netherlands last week.

The tech titan was spotted touring the Russian-commissioned megayacht in early March, though the impressive boat didn’t arrive stateside until this week due to sanctions, according to The Sun.

The website reported that Zuckerberg purchased the pricey yacht – along with its own $30 million partner boat — most likely as an early 40th birthday present to himself.

The boat reportedly traveled to Florida after being granted special permission to be imported just weeks ahead of Zuckerberg’s birthday on May 14.

Zuckerberg’s yacht is just 30 feet shorter than the length of fellow billionaire Jeff Bezos’ 417-foot megayacht Koru, which the Amazon boss snagged for a whopping $500 million.

Zuckerberg’s rep did not immediately respond to Page Six’s request for comment.

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Finding a used yachts for sale between $900,000 and $1,000,000 that fits your needs when it comes to number of passengers, horsepower, inside accommodations, and other features on board can be a challenge with so many options available on the market today. There are many types of boats available between $900k and $1m like  center-consoles ,  cruising yachts , and  fishing boats , with many good options across all length ranges Still, there are plenty of opportunities with brands like  Sea Ray ,  Carver ,  Princess ,  Grand Banks ,  Meridian ,  Viking ,  Hatteras ,  Bertram , and others. Let the team at United Yacht Sales help you find the right vessel that fits your needs under $1 million.

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Live updates, rolls-royce debuts yacht-inspired car with shock $30 million price tag.

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Rolls-Royce unveiled an open-topped, 1930s yacht-inspired extremely limited-edition model on Monday with a price tag to match a large and luxurious pleasure craft.

The Rolls-Royce La Rose Noire Droptail reimagines the carmaker’s typical four-seat sedan as a two-seat roadster — and is expected to run auto aficionados more than $30 million.

Though an exact price isn’t listed, other cars in Rolls-Royce’s coachbuilt line sell for about $28 million. However, the Droptail — of which there will be just four created — costs more to make, a company spokesperson confirmed to Bloomberg .

The Droptail features a low-slung exterior and a crimson interior that draws inspiration from the French Black Baccara rose, which the commissioning owners — thought to be a husband-and-wife duo heading up a prominent family — said is “beloved by the mother,” hence its “La Rose Noire” name.

Inside, the car’s dashboard utilizes over 1,600 pieces of black sycamore wood trim veneer cut into symmetrical triangles and arranged with pops of red designed to mimic rose petals scattering in the wind.

There’s also a champagne storage compartment that stores a bottle of bubbly from the commissioning family’s own vineyard, and a custom Audemars Piguet watch is mounted into the dash but also can be removed and worn.

A timepiece by the Swiss watchmaker alone could cost tens of thousands of dollars. It’s most popular model, the Royal Oak, runs for about $26,200 on Audemars Piguet’s website .

There’s just three buttons on the dashboard, which is minimalist compared to its other vehicles, along with control hazard lights and other quick-control tasks.

The rest of the car’s controls are hidden away in the center console.

The Black Baccara rose also inspires the car’s exterior, which comes in a decadent red hue dubbed “True Love” that Rolls-Royce said took 150 iterations to perfect.

The Droptail’s silhouette comes in at 17 feet long by 6.5 feet wide, smaller that Rolls-Royce’s highly-anticipated, first-ever electric vehicle, which is set to debut by the end of this year for $420,000.

From the back, the Droptail’s lower-to-the-ground construction evokes the figure of a sailing yacht, while the front of the car boasts Rolls-Royce’s well-known Pantheon-style grille.

However, “in a discreet flourish, the reverse surface of the grille’s vanes are painted in ‘True Love’ — a subtle detail that is only visible by way of indirect reflection,” according to the British carmaker.

Aside from the fact that the Droptail is Rolls-Royce’s first two-seater in 100 years, the company said the new model has the most complex construction the luxury carmaker has had since its founding in 1906.

“Its assembly required such intense concentration that the single craftsperson tasked with creating it would only work in one-hour sessions for no more than five hours per day, ensuring they possessed the concentration required for perfect execution,” the company explained.

In total, one Droptail takes “nine months of flawless craftsmanship” to complete, it added.

Rolls-Royce has not revealed any of the Droptail’s performance figures, though it’s powered by the 6.75-Liter V12 engine that’s also under the hood of Rolls-Royce’s Ghost and Phantom models, which can each accelerate to 60 mph in 4.6 seconds.

Representatives for Rolls-Royce did not immediately respond to The Post’s request for comment.

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Luxury yachts and other myths: How Republican lawmakers echo Russian propaganda

Two senior Republican lawmakers, the chairs of the House Intelligence and Foreign Affairs committees, say their colleagues are echoing Russian state propaganda against Ukraine.

Researchers who study disinformation say Reps. Mike Turner, R-Ohio, and Michael McCaul, R-Texas, are merely acknowledging what has been clear for some time: Russian propaganda aimed at undermining U.S. and European support for Ukraine has steadily seeped into America’s political conversation over the past decade, taking on a life of its own.

McCaul, chair of the House Foreign Affairs Committee, told Puck News he thinks “Russian propaganda has made its way into the United States, unfortunately, and it’s infected a good chunk of my party’s base.”

Turner, chair of the House Permanent Select Committee on Intelligence, told CNN that anti-Ukraine messages from Russia are “being uttered on the House floor.”

For the past decade, since Russia’s first military incursion into Ukraine in 2014, Moscow has spread propaganda and disinformation in a bid to undercut U.S. and European military support for Ukraine, according to U.S. and Western officials.

Some of the arguments, distortions and falsehoods spread by Russia have taken root, mostly among right-wing pro-Trump outlets and Republican politicians, researchers say, including that Ukraine’s government is too corrupt to benefit from Western aid and that the Biden family has alleged corrupt ties to Ukraine.

Russia, in keeping with traditional propaganda techniques, seeks to make its case and tarnish Ukraine through a mixture of outright falsehoods, half-truths, inferences or simply amplifying and promoting arguments already being made by American or European commentators and politicians, researchers say.

The propaganda is sometimes spread covertly, through fake online accounts, or openly by Russian officials and state media. As a result, the origin of some allegations or criticisms is often opaque, especially when a certain accusation or perception has gained wide acceptance, leaving no clear fingerprints.

Early in the war, a false story boosted by Russian propaganda — that the U.S. had helped Ukraine build biological weapons labs — gained traction on right-wing social media and was touted by then-Fox News host Tucker Carlson.

Russia also is conducting a parallel propaganda campaign in Europe. Belgium’s prime minister said Thursday that his government is investigating alleged Russian bribes to members of the European Parliament as part of Moscow’s campaign to undermine support for Ukraine. Czech law enforcement officials last month alleged that a former pro-Russian member of Ukraine’s parliament, Viktor Medvedchuk, was behind a Prague-based Russian propaganda network designed to promote opposition to aiding Ukraine.

Here are some examples of Republican lawmakers using arguments often promoted by Russian propaganda:

Buying yachts

When Ukrainian President Volodymyr Zelenskyy met with members of Congress behind closed doors in December to appeal for more U.S. help for his country’s troops, some lawmakers raised questions about Ukraine allegedly buying yachts with American aid money.

Zelenskyy made clear that was not the case, according to Republican Sen. Thom Tillis of North Carolina, a strong supporter of arming Ukraine. “I think the notion of corruption came up because some have said we can’t do it, because people will buy yachts with the money,” Tillis told CNN. “[Zelenskyy] disabused people of those notions.”

Where did the yacht rumor come from?

Pro-Russian actors and websites promoted a narrative alleging Zelenskyy bought two superyachts with U.S. aid dollars. One Russia-based propaganda site, DC Weekly , published a story last November that included photos of two luxury yachts, called Lucky Me and My Legacy , which it alleged were bought for $75 million.

Rep. Marjorie Taylor Greene, R-Ga., a vocal opponent of military aid to Ukraine, in November retweeted a post about the alleged yacht purchase from the Strategic Culture Foundation, a Russian-based propaganda outlet directed by Russia’s intelligence services, according to the Treasury Department. The U.S. has imposed sanctions on the organization, accusing it of spreading disinformation and interfering in U.S. elections.

Another outspoken critic of aid to Ukraine, Republican Sen. J.D. Vance of Ohio, also made a similar claim.

In a December interview with former President Donald Trump’s White House adviser Steve Bannon, Vance claimed that members of Congress wanted to cut Social Security benefits to provide more aid to Ukraine, and that money would allegedly be used for Zelenskyy’s ministers to “buy a bigger yacht.”

“There are people who would cut Social Security, throw our grandparents into poverty. Why? So that one of Zelenskyy’s ministers can buy a bigger yacht?” Vance said. “Kiss my ass, Steve. It’s not happening.”

The tale of Zelenskyy’s luxury yacht, however, turned out to be totally false . The yachts cited in the DC Weekly article remain up for sale , the owners told The Associated Press.

Two academics at Clemson University, disinformation researchers Darren Linvill and Patrick Warren, found that DC Weekly ran numerous stories copied from other sites that were rewritten by artificial intelligence engines. The articles had bylines with fake names along with headshots copied from other online sites. DC Weekly appeared to be a Russian effort to launder false information through a seemingly legitimate news site as part of an attempt to undermine U.S. support for Ukraine, according to the researchers .

Asked by reporters about Vance’s comments, Tillis said: “I think it’s bullshit. ...If you’re talking about giving money to Ukrainian ministers — total and unmitigated bullshit.”

Greene’s office did not respond to a request for comment.

Vance’s spokesperson said the senator was making a rhetorical point about how he opposed sending U.S. assistance to what he sees as a corrupt country, but was not asserting the yacht stories online were accurate.

Vance’s office referred NBC News to an earlier response to the BBC on the same topic:

“For years, everyone in the West recognized that Ukraine was one of the most corrupt countries in the world. Somehow everyone forgot that just as we started sending them billions of dollars in foreign aid.”

Enabling ‘corruption’

Russian state media for years has painted Ukraine as deeply corrupt, and has argued that the U.S. and its allies are wasting money and military hardware by assisting such an allegedly corrupt government.

“This is absolutely a line that they have pushed, and then once it appears in the Western ecosystem, other [Russian] media picks it up and it gets recycled back,” said Bret Schafer, a senior fellow at the Alliance for Securing Democracy.

This line of argument has gained traction partly because Ukraine does face a genuine corruption problem.

Russia’s effort to focus attention on corruption in Ukraine reflects a long-established propaganda method of using facts or partial truths to anchor a broader assertion or accusation, sometimes making a leap in logic, Schafer and other researchers said. Russia’s message amounts to: Ukraine is corrupt, therefore U.S. and Western aid will be stolen and wasted.

Schafer said it was ironic for Russia, a country mired in corruption and kleptocracy, to be leveling accusations about corruption.

Republican Rep. Mary Miller has said she strongly opposes more assistance for Ukraine because it amounts to sending cash to “corrupt oligarchs.”

“With Zelensky coming to DC this week to ask for more money, I will continue to vote AGAINST sending your tax $$ to corrupt oligarchs in Ukraine for a proxy war that could have ended in ‘22,” Miller wrote in a post on X in December.

The Illinois lawmaker also echoed another assertion that often appears in Russian media, that the Biden administration allegedly undermined efforts by Russia to avoid war with Ukraine.

 “A peace deal was on the table that [Ukraine] and [Russia] were both ready to sign, but Biden said NO,” she wrote.

There was in fact no proposed peace agreement that Russia and Ukraine were prepared to sign before Russia launched its full-scale invasion of Ukraine in February 2022, according to U.S. and European officials. As Russian troops massed on the border of Ukraine, Western governments urged Russia not to invade and warned there would be economic and diplomatic consequences.

Reuters has reported that Russian President Vladimir Putin rejected a possible deal to avert a war that had been discussed with Kyiv by Russia’s envoy to Ukraine. The Kremlin said the report was inaccurate and has said Russia tried for years to arrive at an understanding with Ukraine.

As for corruption in Ukraine, Zelenskyy has vowed to tackle the problem, sacking senior officials in some recent cases. But some civil society groups have criticized his approach and Ukrainians say corruption is the country’s second-most serious problem, after the Russian invasion, according to a poll conducted last year.

In an annual survey, Transparency International said Ukraine made progress toward addressing the issue and now ranks 104th out of 180 countries on its Corruption Perceptions Index , climbing 12 places up from its previous ranking.

Ukraine is not alone among countries that receive U.S. and other foreign aid but struggle with corruption. Supporters of assisting Ukraine argue it would undermine America’s influence in the world and its humanitarian efforts if Washington withheld foreign aid from every country where there were reports of corruption.

Miller’s office did not respond to a request for comment.

The Biden family and Ukraine

Republicans have repeatedly alleged that President Joe Biden and his son Hunter have corrupt ties to Ukraine, and that they sought $5 million in bribes from the Ukrainian energy company Burisma to protect the firm from an investigation by Ukraine’s prosecutor general.

There is no credible evidence for the allegations. A key source for the accusations against the Bidens is a former FBI informant, Alexander Smirnov, who was arrested in February on federal charges of fabricating the bribery claims. Smirnov says he was fed information by Russian intelligence.

Republicans had heavily promoted Smirnov’s allegations against the Bidens, seeing them as crucial to a planned impeachment effort against the president that has since fizzled .

“In my estimation, that is probably the clearest example of Russian propaganda working its way into the American political system,” said Emerson Brooking, a resident senior fellow at the Digital Forensic Research Lab of the Atlantic Council.

GOP Rep. Paul Gosar of Arizona cited the false bribery allegations in expressing his opposition to providing assistance to Ukraine.

“In exchange for … bribe money from Ukraine, Joe Biden has dished out over $100 billion in taxpayer money to fund the war in Ukraine. I will not assist this corruption by sending more money to the authoritarian Ukrainian regime,” Gosar said in a statement in October.

Gosar’s office did not respond to a request for comment.

Dan De Luce is a reporter for the NBC News Investigative Unit. 

Syedah Asghar is a Capitol Hill researcher for NBC News and is based in Washington, D.C.

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Final defendants sentenced in $65 million TRICARE fraud

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Date: April 12, 2024

Contact: [email protected]

SAN DIEGO — The final two members of a massive conspiracy to bilk TRICARE, the military’s healthcare program, out of more than $65 million have been sentenced in federal court.

Former U.S. Marine Joshua Morgan and former U.S. Navy Sailor Kyle Adams were sentenced to 21 months and 15 months, respectively, and ordered to pay millions in restitution and forfeit the fruits of their criminal activity.

Morgan and Adams have admitted that they recruited fellow servicemembers and their dependents to receive expensive prescription compounded drugs, while others in the conspiracy wrote bogus prescriptions and filled out duplicitous paperwork to process fraudulent insurance reimbursements, resulting in at least $65 million in losses to TRICARE.

Both the defendants were working for Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, who quarterbacked the scheme. Jimmy Collins received a 10-year prison sentence; Ashley Collins was sentenced to 18 months in home confinement. To account for all the fraud, the couple was ordered to pay $65,679,512.71 in restitution to Defense Health Agency and TRICARE. Other patient recruiters, including Daniel Castro, Jeremy Syto and Bradley White were previously sentenced to custody.

According to plea agreements, the servicemembers that Morgan and Adams recruited agreed to receive the pricey compounded medications in return for a monthly kickback of approximately $300. For young Sailors and Marines-turned-straw-beneficiaries, this money was equivalent to a significant portion of their monthly paycheck. Morgan noted that “it took very little work to sign people up to receive free money.”

For recruiting bogus patients, defendants Morgan and Adams were paid an illegal kickback of between 3 and 7 percent of the total TRICARE reimbursement paid to the pharmacy for the drugs sent to their recruits. By the time this fraud scheme was in full swing, the average cost for these compounded drugs was over $13,000 for a 30-day supply, peaking at around $25,000 for individual drugs.

Over the course of the conspiracy, those illegal kickbacks amounted to at least $2,633,942.69 for Morgan, which, in recognition of his role as the top-level recruiter in this multi-level marketing scheme, was more than twice as much as the next nearest patient recruiter. Meanwhile, Adams earned more than $1 million for his efforts.

To fund these kickbacks, based on false pretenses and representations, TRICARE paid at least $11,490,654.00 in insurance reimbursements for compounded medications prescribed to straw beneficiaries directly recruited by defendant Adams. During the same period, TRICARE paid at least $4,418,709 for compounded medications prescribed to straw beneficiaries directly recruited by defendant Morgan, although that amount underrepresents the severity of his criminal conduct due to his role as a top-level recruiter responsible in part for the losses to TRICARE caused by various sub-recruiters.

The doctors, Carl Lindblad and Susan Vergot, and a nurse practitioner, Candace Craven, who wrote the fraudulent prescriptions and filled out other duplicitous paperwork, were previously sentenced. The pharmacy that filled the fraudulent prescriptions, CFK, Inc., also previously pleaded guilty.

According to the pleadings, the sharp increase in the number of bogus prescriptions for compounded drugs was the result of multiple fraud schemes, including this one, that popped up around the country. As a result, the TRICARE program faced a $2 billion explosion in liability for compounded prescription drugs.

“Today’s sentencing closes the last chapter on this outrageous fraud scheme that almost put TRICARE into bankruptcy,” said U.S. Attorney Tara McGrath. “Our military members and taxpayers deserve so much better. The magnitude and significance of this case reflects our continued dedication to the well-being of the armed forces and their families, as well as our steadfast protection of the U.S. taxpayer.”

“NCIS will not stand by as individuals shamelessly attempt to disrupt the lives of those who have and continue to serve our country, and steal from what they rightfully earned,” said Director Omar Lopez, Naval Criminal Investigative Service. “This case highlights NCIS’ investigative capabilities and our commitment to collaborate with our law enforcement partners in detecting and dismantling these criminal acts of fraud.”

“Today’s sentencing demonstrates the Defense Criminal Investigative Service’s (DCIS) unwavering commitment to hold accountable those individuals who commit TRICARE fraud and imperil our military healthcare system,” said Kelly Mayo, Director DCIS. “The outstanding work of the investigative team ensured the perpetrators were held criminally accountable. I want to thank the U.S. Attorney’s Office and the Naval Criminal Investigative Service for their continuing dedication to the pursuit of justice.”

During the course of the investigation, authorities seized numerous items and properties purchased by the Collinses and others with the proceeds of the fraud, including an 82-foot yacht; multiple luxury vehicles, including two Aston Martins; a multimillion-dollar investment annuity; gold and silver bars; cashier’s checks; dozens of pieces of farm equipment and tractor-trailers; and three pieces of Tennessee real estate.

This case was prosecuted by Assistant U.S. Attorney Mark W. Pletcher.

The case was investigated by IRS Criminal Investigation (CI), Defense Criminal Investigative Service, and Naval Criminal Investigative Service.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

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