{"id":53034,"date":"2023-05-02T11:09:24","date_gmt":"2023-05-02T18:09:24","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=53034"},"modified":"2023-05-02T11:12:11","modified_gmt":"2023-05-02T18:12:11","slug":"two-pharmacy-owners-allegedly-involved-in-29-million-health-care-fraud","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=53034","title":{"rendered":"Two NY Pharmacy Owners Allegedly Involved in $29 Million Healthcare Fraud"},"content":{"rendered":"

\"brown<\/span><\/p>\n

A federal indictment was unsealed Tuesday in Brooklyn charging two New York men for their alleged participation in a scheme to submit false and fraudulent claims to Medicare and Medicaid \u2014 a $29 million scheme.\u00a0<\/span><\/p>\n

The defendants allegedly made unnecessary prescriptions and over-the-counter products that were not actually dispensed to pay illegal kickbacks and bribes and to launder the proceeds of their scheme.\u00a0<\/span><\/p>\n

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\n
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According to court documents, Taesung \u201cTerry\u201d Kim, 58, of Purchase, and Dacheng \u201cBruce\u201d Lu, 44, of Great Neck, partly owned and operated four pharmacies:\u00a0 888 Pharmacy Inc. and Huikang Pharmacy Inc., located in Brooklyn, and Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc., located in Flushing. <\/span><\/p>\n

\"\"Between January 2015 and December 2022, Kim and Lu allegedly conspired with others to submit false and fraudulent claims to Medicare and Medicaid for dispensing pharmaceutical and over-the-counter products that were medically unnecessary, procured by paying kickbacks and bribes, or not provided. <\/span><\/p>\n

Further, officials stated that Kim and Lu allegedly conspired with others who paid illegal kickbacks and bribes, in the form of cash and supermarket gift certificates, to Medicare beneficiaries and Medicaid recipients who filled their prescriptions at their pharmacies.<\/span><\/p>\n

\"\"
Source: Government Accountability Report<\/figcaption><\/figure>\n

According to authorities, Kim and Lu also conspired with others to pay and paid illegal kickbacks and bribes, in the form of rent and office staff, to the doctors who prescribed the medically unnecessary medications filled at their pharmacies.<\/span><\/p>\n

Kim and Lu are alleged to have laundered the proceeds of their fraud to generate cash that they could disperse as unrecorded profits to themselves and the pharmacies\u2019 other owners and pay kickbacks to pharmacy customers. <\/span><\/p>\n

\"\"Kim and Lu\u2019s pharmacies submitted approximately $29 million in fraudulent claims to Medicare and Medicaid as part of the scheme.<\/span><\/p>\n

Kim and Lu are charged with conspiracy to commit healthcare fraud, conspiracy to commit money laundering, and conspiracy to pay illegal healthcare kickbacks and bribes. <\/span><\/p>\n

\"\"If convicted, they each face up to 10 years in prison for conspiracy to commit health care fraud, 20 years for conspiracy to commit money laundering, and five years for conspiracy to pay illegal health care kickbacks and bribes.<\/span><\/p>\n

The FBI and HHS-OIG are investigating the case.<\/span><\/p>\n

Trial Attorney Patrick J. Campbell and Acting Assistant Chief Miriam Glaser Dauermann of the Criminal Division\u2019s Fraud Section are prosecuting the case.<\/span><\/p>\n

The Fraud Section leads the Criminal Division\u2019s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. <\/span><\/p>\n

Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. <\/span><\/p>\n

In addition, the Centers for Medicare & Medicaid Services, working with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in healthcare fraud schemes. <\/span><\/p>\n

More information can be found at https:\/\/www.justice.gov\/criminal-fraud\/health-care-fraud-unit<\/a>.<\/span><\/p>\n

All defendants are presumed innocent unless proven guilty.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A federal indictment was unsealed Tuesday in Brooklyn charging two New York men for their alleged participation in a scheme to submit false and fraudulent claims to Medicare and Medicaid \u2014 a…<\/p>\n","protected":false},"author":1,"featured_media":7271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-53034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-department-of-justice"],"yoast_head":"\nTwo NY Pharmacy Owners Allegedly Involved in $29 Million Healthcare Fraud<\/title>\n<meta name=\"description\" content=\"A federal indictment was unsealed Tuesday in Brooklyn charging two New York men for their alleged participation in a scheme to submit false and fraudulent\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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