Peter Pappas is in some major hot water this afternoon. The ex-Philadelphia KiXX 'keeper and current (for now) Philadelphia Union television analyst recently pleaded guilty in federal court to receiving nearly $500,000 in a large drug kickback scheme. Pappas admitted that he recruited others to the scheme, including beneficiaries of TRICARE, the Department of Defense's healthcare program.
According to the AP report linked above, Pappas was "recruited by a marketing company that was paid by pharmacies to refer people whose insurance paid for compounded medication including pain creams, scar creams and vitamins." Though Pappas took in nearly half-a-million dollars, TRICARE and other insurance companies have reported a loss of more than three million dollars.
In a statement, Union Chief Business Officer Tim McDermott said the following:
"Earlier today, we were made aware of Peter’s guilty plea with the Department of Justice. At this current time, we are gathering information and evaluating the facts as it relates to the case. At that point, we will have further comment and take the appropriate action."
Pappas is due in court again October 25th, where he will face a maximum of 10 years in prison and a 250,000-dollar fine upon sentencing.
UPDATE: Though Peter Pappas agreed to a plea deal back in May, Union CBO Tim McDermott said that the team only found out about it today. In an additional press release, the club has announced that they've parted ways with Pappas.