Arkady Goldin, of Brooklyn, New York, and Value Pharmacy, Inc., located at 257 Broadway in Lynbrook, New York, have been charged by New York authorities with defrauding the New York State Medicaid program out of millions of dollars.
Mr. Goldin, an owner of Value, was charged with Grand Larceny in the First Degree and other crimes for allegedly having paid kickbacks to a hospital employee for the referral of prescriptions for costly cancer medications. Additionally, prosecutors alleged that Value billed Medicaid for over a million dollars of prescription medication it did not have in stock to dispense.
The Medicaid Fraud Control Unit ("MFCU") of the New York State Attorney General's Office, working with the New York State Comptroller's Office, also filed an asset forfeiture and civil recovery action against Mr. Goldin, Value, and others seeking over $8.7 million in damages and penalties, alleging that Value's owners made millions from these schemes that they funneled through shell companies to purchase personal expenses such as travel, luxury cars, and a high-end country club membership.
"We allege that the defendant engaged in an elaborate kickback scheme to line his pockets by defrauding Medicaid and pretending to dispense cancer medication he never actually distributed. Medicaid is meant to be a health care safety net for New Yorkers – not a bank account for criminals," said Attorney General Eric T. Schneiderman. "My office will continue to fight for the integrity of the Medicaid program to ensure that our tax dollars are not wasted – and instead put towards helping our most vulnerable citizens, as intended."
"Goldin and his accomplices allegedly capitalized off the treatment of others' suffering to steal millions," Comptroller Thomas P. DiNapoli said. "Through kickbacks and sham billing, Goldin and his partners diverted millions meant to provide treatment to those in need to fund their lifestyles and real estate investments. Attorney General Schneiderman and I will continue to root out public fraud and protect taxpayer funds."
As alleged, during the course of this scheme, dating to at least 2012, Mr. Goldin paid thousands of dollars in kickbacks and other benefits to a former hospital employee. Prosecutors asserted that, as a result of this illegal kickback scheme, Mr. Goldin, through Value, submitted at least $700,000 in false claims for reimbursement to Medicaid.
Medicaid prohibits all providers, including pharmacies, from securing services or patients through the payment of kickbacks.
Prosecutors additionally alleged that Mr. Goldin submitted over $1.2 million in claims to Medicaid certifying that Value had dispensed Neupogen, a high-dollar cancer treatment medication, to patients when Value never possessed sufficient quantities of Neupogen to support the claims it submitted.