Nov. 16 (UPI) — Two New York pharmacy owners face 20 years in prison after pleading guilty to an elaborate Medicare fraud scheme.
Arkadiy Khaimov, 39, and Peter Khaim, 42, were alleged to have submitted millions of dollars worth of fraudulent Medicare claims, then laundering more than $18 million through phony businesses. The Justice Department reports each pleaded guilty to one count of conspiracy to commit money laundering.
Khaimov and Khaim allegedly submitted claims through a network of pharmacies in New York that either they or their co-conspirators owned and operated. They continued submitting claims throughout the COVID-19 pandemic. Many of the claims were for expensive cancer medications such as Targretin Gel 1% and Panretin Gel 0.1%.
After collecting on the claims, the duo laundered the money through shell companies such as a fake pharmacy wholesaler, which would then pay out to companies in China which would distribute the funds to them and others. Some of the recipients of funds were located in Uzbekistan. Relatives of Khaimov and Khaim also received money.
The COVID-19 pandemic was a boon for the network of scammers. They used “emergency override” billing codes during the pandemic to make even more fraudulent claims.
Both men are scheduled to be sentenced in May.
Khaim was among 13 people arrested in January for money laundering and bribery in a $100 million healthcare scheme. Khaim, a.k.a. Peter Khaimov, was named as one of the leaders of the “Gulkarov Conspirators.” One of the co-conspirators in the case, Dr. Marvin Moy, vanished after a boating accident in late October.
In May, Arkadiy Khaimov was sentenced to 51 months in prison for defrauding a pharmaceutical manufacturer. He was found guilty of submitting an estimated $7.2 million in fraudulent claims to the manufacturer. He was ordered to pay $7.2 million in restitution and forfeit $489,000 which he received through the scheme.
“Khaimov selfishly stole from a program that was intended to reduce the cost of a medication to uninsured individuals and those in need of financial assistance, who were suffering from a serious and potentially life-threatening disease,” stated U.S. Attorney Breon Peace. “Today’s sentence sends a message that incarceration and significant financial penalties are the criminal justice system’s remedies for those who would abuse such beneficial programs to benefit themselves.”
