Pharmacies Indicted for Medicaid Fraud

New York State Attorney General Eric Schneiderman indicted 3 Brooklyn pharmacies and their employees and owners for allegedly stealing $5 million from the Medicaid program, according to the New York Daily News.

The pharmacies are facing fraud charges after audits found the amount of drugs the pharmacies ordered from their suppliers were less than those they said they provided, which allowed the pharmacies to be reimbursed by Medicaid, according to New York Daily News.

According to a press release from Schneiderman’s office, the pharmacies were allegedly paying customers for prescriptions obtained from a local doctor. Then, the pharmacists would bill Medicaid for the drugs even though they were not dispensed.

“Those who defraud Medicaid to line their own pockets are scamming taxpayers and depriving others of important health care services, and today’s indictment sends a clear message that there will be consequences,” Schneiderman told the New York Daily News. “My office will continue to crack down on those who engage in waste, fraud, and abuse of taxpayer money.”

Munir Khan, who owns 2 of the pharmacies in question, was banned from billing Medicaid and deported to Pakistan after a 2008 federal conviction related to his business, the New York Daily News reported. According to Schneiderman’s office, Khan listed his children’s names as the owners of the stores in an effort to fly under the radar.

Khan could face up to 25 years in prison for his charges, which include several counts of grand larceny and felony.

Five of the 7 defendants connected to the pharmacies have been arrested by police, and the remaining 2 may be at-large in Pakistan, the New York Daily News reported.