Pharmacy owners charged with drug fraud $30 millions

The defendants created a network of bogus companies to hide the fraudulent profits; and used the money to buy real estate and luxury items, according to research.

Photo: Courtesy.

By Maria T. Morales

The United States Department of Justice indicted owners of more than a dozen pharmacies, a New York, for Health Care fraud and money laundering.

The fraud, according to the official report it amounts to about $30 million and, they allegedly did it by exploiting emergency codes and changes in the Medicare health system, that came into effect due to the COVID-19 pandemic

The report indicates that with this mechanism, defendants Peter Khaim, of 40 years and Arkadiy Khaimov, of 37, submitted fraudulent claims for expensive cancer drugs that were never provided, ordered or authorized by medical professionals.

Both face charges of conspiracy to commit health care fraud and wire fraud, as well as money laundering.

Khaim is accused, separately, two counts of money laundering cover-up and aggravated identity theft.

While, will face charges for the crimes of concealment of money laundering.

According to the authorities, both took advantage of the flexibility of Medicare that was designed to ensure that patients had access to necessary medications during the COVID-19 pandemic.

Medicare is a health program for older adults, what, in part it is paid for with federal funds and taxpayer taxes.