A.G. Schneiderman Announces Indictment Against Pharmacy Owner, Pharmacist, And Three Pharmacies For Allegedly Defrauding Medicaid Of Over $3 Million

Pharmacy Owner Allegedly Stole Over $3 Million By Falsely Billing HIV Medications That Were Never Dispensed

   Attorney General Eric T. Schneiderman today announced the indictment of Hin T. Wong (“Wong”), 49, of Manhattan, Mery Gooden, 58, of the Bronx, and three pharmacies. The indictment charges Wong, the owner of three Manhattan pharmacies – New York Pharmacy Inc. (“NY Pharmacy”), NYC Pharmacy Inc. (“NYC Pharmacy”), and New York Healthfirst Pharmacy Inc. (“NY Healthfirst”) – for defrauding several government-funded healthcare programs, including Medicaid and Medicare, by falsely billing prescription refills and stealing over $3 million in reimbursement for medication they did not dispense. Wong was indicted for Grand Larceny in the First Degree, a class “B” felony, and other crimes. In addition, Mery Gooden, a pharmacist at NYC Pharmacy, was indicted for Grand Larceny in the Second Degree and other related crimes.

“Pharmacists’ most important duty must be to the welfare of their patients – not lining their own pockets,” said Attorney General Schneiderman. “The blatant theft and abuse of Medicaid is reprehensible and will not be tolerated by my office.”

Following up on a tip from Amida Care Inc., a Medicaid Managed Care Organization, the Attorney General’s Medicaid Fraud Control Unit (MFCU) conducted several undercover operations at NY Pharmacy, NYC Pharmacy, and NY Healthfirst Pharmacy. Wong, a licensed pharmacist, and Gooden, the supervising pharmacist of NYC Pharmacy, allegedly paid undercover agents posing as Medicaid patients cash for HIV prescriptions and for referring other Medicaid patients to bring their prescriptions to NY Pharmacy and/or NYC Pharmacy. 

The defendants thereafter allegedly submitted false claims for reimbursement to various insurers, including Medicaid, for prescription refills Wong nor her staff ever dispensed – a scheme known as “auto-refilling.” Wong, NY Pharmacy, NYC Pharmacy, and NY Healthfirst are charged with allegedly receiving over $60,000 for prescription refills dispensed just to undercover agents. 

Today’s indictment further alleges that Wong’s pharmacies did not purchase enough medication to support their substantial billings to Medicaid and other insurers. Between January 1, 2014 and August 1, 2017, Wong’s pharmacies billed Medicaid and other insurers over $11 million for medications they allegedly dispensed, but purchased only a fraction of the amount of drugs necessary to fill those prescriptions. Today’s indictment alleges that Wong and her pharmacies stole over $3 million as a result of obtaining reimbursement for medication they did not dispense.

Today’s indictment charged the two defendants and three pharmacies as follows:

• Hin T. Wong is charged with one count of Grand Larceny in the First Degree, a class B felony; four counts of Grand Larceny in the Second Degree, a class C Felony; two counts of Healthcare Fraud in the Second Degree, a class C felony; three counts of Scheme to Defraud in the First Degree, a class E felony; twelve counts of Offering a False Instrument for Filing in the First Degree, a class E felony; and one count Medical Assistance Provider; Prohibited Practices, a class E felony.

• Mery Gooden is charged with two counts of Grand Larceny in the Second Degree, a class C felony; one count of Grand Larceny in the Third Degree, a class D Felony; one count of Scheme to Defraud in the First Degree, a class E felony; and one count Medical Assistance Provider; Prohibited Practices, a class A misdemeanor.

• NY Pharmacy Inc. is charged with one count of Grand Larceny in the First Degree, a class B felony; four counts of Grand Larceny in the Second Degree, a class C Felony; two counts of Healthcare Fraud in the Second Degree, a class C felony; three counts of Scheme to Defraud in the First Degree, a class E felony; nine counts of Offering a False Instrument for Filing in the First Degree, a class E felony; and one count Medical Assistance Provider; Prohibited Practices, a class E felony. 

• NYC Pharmacy Inc. is charged with one count of Grand Larceny in the First Degree, a class B felony; three counts of Grand Larceny in the Second Degree, a class C felony; one count of Scheme to Defraud in the First Degree, a class E felony; three counts of Offering a False Instrument for Filing in the First Degree, a class E felony; and one count Medical Assistance Provider; Prohibited Practices, a class A misdemeanor. 

• New York Healthfirst Pharmacy Inc. is charged with two counts of Grand Larceny in the Second Degree, a class C Felony and one count of Scheme to Defraud in the First Degree, a class E felony. 

If convicted, Wong faces up to twenty-five years in state prison and Gooden faces up to fifteen years in state prison; each of Wong’s pharmacies can be ordered to pay a fine double what it gained from its criminal conduct, as well as restitution to those victimized by its conduct.

Hin T. Wong and NY Pharmacy Inc. were initially arrested on August 24, 2017 by MFCU investigators following the execution of a search warrant at NY Pharmacy. Today’s indictment supersedes an initial indictment and is the product of MFCU’s continuing investigation into defendants’ conduct.

On August 24, 2017, the Attorney General filed a civil asset forfeiture and recovery action against Wong, her three pharmacies, and another entity owned by Wong, KT Studio Inc. a/k/a Dove Cat Studio a/k/a C’est La Vie Studio, in New York County Supreme Court, seeking over $11 million in damages. As part of the civil action, the Attorney General also obtained a court order freezing the bank accounts held by the defendants to preserve money wrongfully obtained from Medicaid. The civil action is still pending.

The Attorney General thanks the New York State Office of the Medicaid Inspector General and the United States Department of Health and Human Services Office of the Inspector General (HHS-OIG) for their continued partnership and assistance in this investigation. The Attorney General also thanks Medicaid managed care companies Amida Care and Wellcare; pharmacy benefit managers CVS Caremark and Optum RX; and pharmaceutical wholesalers HD Smith and McKesson for their cooperation throughout the investigation.

The charges against the defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.

Bronx District Attorney Darcel Clark Announces Three Sentences in Three Separate Cases

BRONX WOMAN SENTENCED TO 40 YEARS TO LIFE IN PRISON FOR FATALLY STABBING PREGNANT WOMAN ON HER WEDDING DAY 

Defendant Slashed Victim’s Throat; Tried to Pass Baby As Her Own

  District Attorney Clark said the defendant, Ashleigh Wade, 24, of 4450 Monticello Avenue in Wakefield was sentenced today to 25 years to life for second-degree Murder and 15 years for second-degree Kidnapping, to run consecutively, by Bronx Supreme Court Justice Margaret Clancy. Wade was convicted by a jury on Oct. 5, 2017.

BRONX MAN SENTENCED TO 15 YEARS IN PRISON FOR SHOOTING NEIGHBOR WHO WAS DRIVING CAR 

Victim Shot In Head, Crashed, Suffered Severe Brain Injury

  District Attorney Clark said the defendant, Charles Malcolm, 23, of Beekman Avenue, was sentenced today to 15 years in prison followed by five years post-release supervision for Attempted Murder in the second-degree by Acting Bronx Supreme Court Justice Martin Marcus. The defendant pleaded guilty on November 1, 2017. 

WOMAN PLEADS GUILTY TO MANSLAUGHTER IN DEATH OF NEWBORN BABY GIRL; WILL GET 10 YEARS IN PRISON 

Defendant Dropped Infant from Apartment Window

  District Attorney Clark said the defendant, Jennifer Berry, 35, of 177 Gailmore Drive, Yonkers, pleaded guilty today before Bronx Supreme Court Justice Margaret Clancy to first degree Manslaughter. As part of the plea agreement, Berry will be sentenced on December 14, 2017, to ten years in prison followed by five years post-release supervision. 

BRONX TEENAGER INDICTED FOR FATALLY STABBING ONE STUDENT, SERIOUSLY WOUNDING ANOTHER IN NYC HIGH SCHOOL

Defendant Allegedly Stabbed Two Boys in Classroom

  Bronx District Attorney Darcel D. Clark today announced that an 18-year-old Bronx youth has been indicted for Manslaughter and Assault in the stabbing of two fellow students inside his Bronx high school. 

 District Attorney Clark said, “The defendant allegedly pulled a knife and stabbed one youth to death and critically injured another in front of dozens of students who remain traumatized. Young lives were shattered in a place where bright futures are supposed to begin.” 

 District Attorney Clark said the defendant, Abel Cedeno, 18, of Grant Avenue, was indicted on first-degree Manslaughter, first-degree Assault and fourth-degree Criminal Possession of a Weapon. He was arraigned today before Bronx Supreme Court Justice William Mogulescu and continued held on $500,000 bail. He is due back in court on November 29, 2017.

 According to the investigation, at 10:40 a.m. on September 27, 2017, in a classroom inside the Urban Assembly School for Wildlife Conservation at 2024 Mohegan Avenue, Cedeno slashed and stabbed Matthew McCree, 15, in the chest causing his death; and Ariane Laboy, 16, inflicting multiple slash wounds to his left arm and a stab wound to his right chest, causing serious physical injury.

  District Attorney Clark thanked Detective Shaun O’Donnell of the 48th Precinct Detective Squad for his assistance.

An indictment is an accusatory instrument and not proof of a defendant’s guilt.

BRONX MAN INDICTED FOR SEXUAL ASSAULT OF 12-YEAR-OLD GIRL HE FOLLOWED, DRAGGED INTO ALLEYWAY AT GUNPOINT

Defendant Extradited From Massachusetts; Faces Up To Life In Prison

  Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been indicted on Predatory Sexual Assault and other sexual crimes for attacking a 12-year-old girl at gunpoint. 

   District Attorney Clark said, “An act of violence against a child is the worst imaginable crime and one of sexual violence is especially heartbreaking. The defendant faces life behind bars, a sentence worthy of the brutal crime he is charged of committing. We will work hard to see that the brave survivor of this horrific attack receives justice.” 

 District Attorney Clark said the defendant, Malcolm Lugo, 20, of 1771 Monroe Avenue, was indicted for Predatory Sexual Assault against a Child, two counts of first-degree Criminal Sexual Act, Predatory Sexual Assault, first-degree Sexual Abuse, Endangering the Welfare of a Child and fourth-degree Criminal Possession of a Weapon. He was arraigned today before Bronx Supreme Court Justice George Villegas. He was remanded and is due back in court on Feb. 13, 2018. If convicted of the top charge, he faces up to life in prison. 

  According to the investigation, on the morning of August 13, 2017, near the area of Weeks Avenue and East 173rd Street in Concourse Village, the defendant followed a 12-yearold girl who was returning from a local store. The defendant allegedly placed a gun to the child’s head and dragged her into a nearby alley, where he sexually assaulted her. Before fleeing the scene, he threatened the victim, stating “I know where your family is” and “I’ll kill them all.” The District Attorney’s Office worked with the Fugitive Task Force Warrant Squad to locate the defendant in Massachusetts.

  District Attorney Clark thanked NYPD Detectives Christopher Ort and Harris Goldner of the Bronx Special Victims Unit.

An indictment is an accusatory instrument and not proof of a defendant’s guilt.

Comptroller Stringer Releases 4th Annual Making the Grade Report

Since letter grades started in 2014, progress emerging

More Agencies Receiving “A” and “B” grades than ever before, though some agencies holding the City back

Annual spending with M/WBEs to $554 million in FY 2017, an increase of $208 million since FY 2014

   Comptroller Scott M. Stringer released his fourth annual “Making the Grade” Report, which evaluates each City agency’s contracting with minority- and women-owned businesses – or M/WBEs. Using an identical formula as previous iterations of the report, the 2017 “Making the Grade” gives the City an overall “D+” grade for the third straight year.

In FY 2017, the City awarded $21 billion total in goods and services to outside vendors. Of all citywide contracts, just over $1 billion was awarded to M/WBEs. That represents 4.9 percent of all citywide awards – an uptick from 4.8 percent a year ago and a rise from 3.9 percent in FY 2014.

Enacted in 2013, Local Law 1 regulates the M/WBE program. When examining Local Law 1 spending specifically – which reflects a smaller subset of overall City procurement – the City awarded 11.4 percent of all its contracts with M/WBEs. Though it represents a decline from 13 percent two years ago, it reflects a significant rise from 6.8 percent in FY 2014.

Promising signs have emerged, however. In FY 2017:

• Actual spending with M/WBE firms is up to $554 million in FY 2017, a $208 million increase since FY 2014
• 22 percent of the 5,259 certified M/WBEs received City spending, compared to 18 percent in FY 2014. The number of M/WBE companies receiving City contracts – 1,113 in total – has reached an all-time high.
• In the last three years, the City has certified nearly 1,000 more M/WBEs, which helps those companies receive government services and contracts – a jump from 4,115 in FY 2015 to 5,259 in FY 2017.
• The Commission on Human Rights, the Department for the Aging, and the Department of Small Businesses Services – which received a “C”, “D”, and “D” in FY 2014 respectively – all received ‘A’ grades. That represents a concerted, laudable effort by those agencies to increase their spending with M/WBEs.

“Four years ago, we launched this groundbreaking report to elevate conversation about fairness in our economy. Today, progress is happening. For decades, the deck has been stacked against M/WBEs. But now, we’re seeing steps in the right direction,” Comptroller Stringer said. “This issue is about growing our neighborhoods by delivering real, community-level wealth creation. It’s critical to tackling our affordability crisis, and let there be no doubt that the City has a long way to go. The Mayor’s Office and Deputy Mayor Buery, in particular, must be recognized for taking important steps forward. It’s our hope and belief that the initiatives launched by the City recently will pay dividends in our reports down the road.”

“Making the Grade” awards agency grades based on the actual spending in each fiscal year, rather than the registered value of contracts, which may or may not result in actual spending and can often span multiple years. The report uses data from CheckbookNYC – the Comptroller’s transparency website – to analyze how much 31 Mayoral Agencies and the Comptroller’s Office spent with M/WBEs during the last fiscal year. While spending with M/WBEs has increased in recent years, the City’s grade remains a “D+” largely because agencies with the highest spending are also those with the worst M/WBE performance. Last year:

• Compared to FY 2016, grades increased at 13 agencies in FY 2017. Overall, 42 percent of agencies saw their grade increase in the last year.
• There are now more agencies receiving “A” and “B” grades than ever before.
• Grades decreased at seven agencies and remained the same at 11 agencies.
• Four agencies received “F” grades. The Department of Buildings, the Department of Citywide Administrative Services, the Department of Sanitation, and the Department of Transportation scored the lowest marks.
• The Comptroller’s Office received a “B” grade for the second straight year. In FY 2017, the Comptroller’s Office spent $3.3 million with M/WBEs, or 24.3 percent of total office procurement.

As part of this report, Comptroller Stringer issued a series of policy recommendations for the City to pursue in order to attain the Administration’s goals of certifying 9,000 M/WBEs by 2019 and awarding 30 percent of the dollar value of contracts to M/WBEs by 2021. Specifically, this report calls on the City to take the following additional steps:

• Assess large contracts with upcoming renewals and consider re-bidding to create new M/WBE opportunities;
• Establish a working group comprised of all certifying bodies and relevant stakeholders to streamline the certification process through a universal certification system. Even with recent improvements, the current M/WBE certification process is too cumbersome. As many as 10 separate entities certify M/WBEs and each have different processes that vary in their requirements.
• Like the Comptroller’s Office, the City should hire a full time Chief Diversity Officer (CDO) at every City agency to focus exclusively on M/WBE accountability. Each City agency should do so as well. Similar to the M/WBE Officer, the CDO would report directly to the agency head. However, M/WBE accountability would be the full time focus of the CDO, rather than just one part of their larger portfolio.

To read the full report, click here, and to view Power Point slides on the report, click here.

Comptroller Stringer Launches New Interactive Website Analyzing the City’s Economy, Releases Report on the City’s Growth in the 3rd Quarter of 2017

New website available at www.comptroller.nyc.gov/EconomicData

NYC’s economy continued to grow, as both the number of jobs and earnings rose

For the first time ever, venture capital in the New York City Metro Area outpaced both San Francisco and Silicon Valley

   Between July and September 2017, New York City’s economy continued to grow, expanding by 3.6%, according to an analysis released today by New York City Comptroller Scott M. Stringer. The report also shows that while average wages grew moderately and venture capital investment in the City reached an all-time high in the third quarter of 2017, 45% of the new jobs created were in low-wage industries.

In addition to releasing the report, Comptroller Stringer launched a new website — www.comptroller.nyc.gov/EconomicData — that presents data on the City’s economy in an accessible, open, and easy to manipulate way. This will allow everyday New Yorkers, policymakers, and economists to explore the data that underpins the Comptroller’s Quarterly Economic Reports and analyze the City’s economic performance over time.

“In an age of ‘alternative facts,’ transparency matters. Everyone should be able to access economic data in a digestible way — and we’ve developed a new, innovative tool to do just that. Sunlight matters now more than ever,” New York City Comptroller Scott M. Stringer said. “Our economic analysis shows that New York City’s economy is continuing to grow — but it’s a mixed bag. Both employment and venture capital are near record highs, and wages are finally starting to grow. But from the high number of low-wage jobs, to the city’s affordability crisis, to chaos in Washington around budgeting, there are concerns on the horizon. My office will keep crunching the numbers New Yorkers need — so we can plan today for anything that happens tomorrow.”

Released every three months, the Comptroller’s Quarterly Economic Update tracks New York City’s economic health and analyzes the City’s economy in a national context. The report includes information on economic growth, unemployment, average wages, business activity, real estate transactions, and other economic indicators. For the first time ever, the report and its underlying data are available on an interactive website at www.comptroller.nyc.gov/EconomicData.

Findings include:

Economic Growth Continued to Speed Up

• In the 3rd quarter of 2017, New York City’s economy grew at a rate of 3.6% — up from 3.3% in the previous quarter, and triple the growth rate of 1.2% in the 3rd quarter of 2016;
• The City’s economy out-performed the national economy, growing 3.6%, compared to 3.0% nationwide.

Job Growth Remained Robust, But Concerns About Low-Wage Jobs Lingered

• In the 3rd quarter, New York City added 29,000 private sector jobs, for a seasonally-adjusted annual rate of growth of 2.7%. Job growth in the city accelerated from last quarter, and was once again stronger than the rest of the country;
• Since the city’s economic recovery began at the end of 2009, the city has added an average of 23,500 jobs per quarter — resulting in an average annual growth rate of 2.7%. Over the same time period, the national growth rate was just 2.0%;
• The City’s unemployment rate, adjusted for seasonality, was 4.9% in the 3rd quarter — up from an all-time low of 4.3% in the 1st and 2nd quarters of the year – but initial unemployment claims continue below trend;
• Continuing a years-long trend, most of the new private-sector jobs added in the 3rd quarter — 13,100 jobs, or 45.0% — were in low-wage industries. An almost equal number, 13,000 jobs (44.9%) were in medium-wage industries;
• The remainder of the jobs created in the 3rd quarter, 10.1%, were in high-wage industries. On this metric, New York City is lagging the nation — in the 3rd quarter, 16.2% of all new jobs in the United States were in high-wage jobs;
• Just 36% of new jobs were in the export sector, which provides goods and services to those outside the NYC metro area, while the remainder were in the local job sector. Export sector job growth typically leads to the creation of more local sector jobs.

Average Wages in New York City Rose Modestly

• Average hourly earnings for private employees in New York City rose 2.7% compared to the 3rd quarter of 2016 to $34.95. This was the largest third-quarter gain since 2015;
• Similarly, Personal Income Tax (PIT) revenues rose 7.8% year-over-year. PIT revenues are made up of two sources, which account for income based on wages and from non-wage sources:
• Withholding tax revenues on wage income rose 14.0% compared to the 3rd quarter of 2016;
• Estimated tax payments on non-wage income, such as interest, rental income, and capital gains, fell 5.7% year-over-year.

Venture Capital Registered a Record High

• After multiple quarters of falling venture capital investment, New York City saw an uptick in the 2nd quarter of 2017. That growth continued in the 3rd quarter, and venture capital investment in the New York City metro area reached an all-time high of $4.23 billion;
• For the first time ever, New York City saw more venture capital investment than both San Francisco and Silicon Valley;
• This massive increase in New York City-based venture capital was in a large part due to a $3 billion investment in WeWork.

New York City’s Real Estate Markets Showed Mixed Data

• In the 3rd quarter of 2017, new commercial leasing activity in Manhattan reached 8.1 million square feet — 17.2% higher than the 3rd quarter of 2016, and the highest level of 3rd quarter leasing since 2006;
• The Manhattan housing market softened in the 3rd quarter of 2017. After nine straight quarters of growth, average sales prices and average price per square foot fell to $2 million (down 1.3% year-over-year) and $1,678 (down 11.5% year-over-year), respectively;
• Similarly, housing market prices in Brooklyn softened, as the average sales prices fell 0.2% year-over-year to $981,623;
• In Queens, however, the average sales price rose 9.3% year-over-year to $614,492;
• The rental market was mixed, with the number of new leases in September 2017 declining 10.7% in Manhattan, falling 4.1% in Brooklyn, but increasing 0.7% in Queens, when compared to September 2016;
• Over the same time period, average asking rents fell 0.6% in Manhattan and 2.3% in Brooklyn, while they grew 3.5% in Queens.

Positive Leading Economic Indicators Point to Future Growth

• Overall leading economic indicators for the City, originally introduced to the Comptroller’s Quarterly Economic Update earlier this year, point to growth in the coming months;
• As reported by ISM-New York, the business condition index — which measures business procurement professionals’ view of the current state of the economy — rose to 56.4% in the 3rd quarter, up from 52.7% last quarter. A reading above 50% indicates economic growth;
• The ISM-NY six-month outlook, which predicts economic growth over the next six months, fell to 59.0% from 69.4%. While still above 50% — which indicates future growth — this change shows less optimism.

To view the full report, visit Comptroller Stringer’s new, interactive webpage at www.comptroller.nyc.gov/EconomicData or click here for a PDF.

HASA Overview: Entitlements, Housing Options, etc.

Gateway Community Development, Inc.

In Collaboration With

Claremont Neighborhood Centers, Inc., and 

NYC Human Resources Administration/

Dept. of Social Services (HRA/DSS)

            Present an

Information/Education Forum

HASA Overview:

Entitlements, Housing Options, etc.

WHO SHOULD ATTEND:

Civilians & Veterans. Persons new and longtime to the field of HIV/AIDS Services & Supports – Health & Housing Resource and Service Providers, Clients, Advocates, Peer Educators, Ministry Leaders, Family-Go-To-Persons, other. Find out what’s new. Come for review of HASA services/resources & referrals. Learn what you need to know to ensure appropriate referrals, service coordination, and adequate service delivery/acquisition.

PRESENTER

John J. Ruscillo | Director of Housing Services
HRA/DSS Special Services

(Wednesday) November 29, 2017

1:00 P.M. – 3:00 P.M.

At

Claremont Neighborhood Centers, Inc.

489 East 169^th Street

Bronx, NY 10456

(Off corner of E. 169^th Street & Third Ave /

 TRAVEL: Bus #15 to E. 169^th Street & Third Ave)

For Additional Information Contact: Carrie Taft, Founder & President/CEO

Gateway Community Development, Inc | (917) 226-7960 | GtwyCDvlpmntInc@aol.com

Doctor And Four Executives Plead Guilty In $30 Million Scheme To Defraud Medicare And Medicaid

Defendants Fraudulently Ran Medical Clinics and Related Medical Supply and Ambulette Companies, While Paying Elderly People to Act as Patients, and Billing for Unjustified or Non-Existent Medical Goods and Services

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that five defendants have pleaded guilty in the past week to participating in a scheme to defraud Medicare and Medicaid through the operation of eight medical clinics and related health care providers in Brooklyn. The defendants pleading guilty are Dr. MUSTAK Y. VAID, medical supply company president MARINA BURMAN, clinic executives ASHER OLEG KATAEV, a/k/a “Oleg Kataev,” and ALLA TSIRLIN, and IVAN VOYCHAK, who helped run two of the fraudulent clinics and a related ambulette company. The defendants were charged with participating in a $30 million health care fraud scheme. As part of the scheme, the defendants or their co-conspirators paid cash kickbacks to elderly patients (the “Paid Patients”) insured by Medicare and/or Medicaid, and then billed Medicare and Medicaid for unnecessary medical services, tests, and supplies.

Acting U.S. Attorney Joon H. Kim said:  “These five defendants bilked Medicare and Medicaid out of millions of dollars for unjustified medications, procedures, and supplies. Medicare and Medicaid were established to assist the elderly and economically disadvantaged, not to serve as cash cows for corrupt professionals.”

Five additional defendants remain under indictment in the case, which is scheduled to go to trial before United States District Judge Lorna G. Schofield on April 23, 2018. Those remaining defendants are presumed innocent unless and until proven guilty.

As alleged in the Indictment and in court papers and proceedings in the case: Aleksandr Burman, an individual with no medical license, established eight medical clinics in Brooklyn (the “Related Clinics”), which operated between 2007 and 2013. For each clinic, Aleksandr Burman hired a doctor, one of whom was VAID, as the nominal owner of the clinic, since New York State law requires that such clinics be owned by a medical professional. In fact, however, VAID was hired by Aleksandr Burman simply to pose as the owner of one of the clinics, and to sign medical charts falsely stating that he had examined a number of Paid Patients, and to provide prescriptions and referrals for medically unnecessary supplies.

In pleading guilty, the five defendants have admitted to various specific roles in operating several of the clinics and two related businesses.

VAID, 44, a physician, pled guilty before Magistrate Judge Henry B. Pitman on November 8, 2017 to charges of falsely holding himself out as the owner of one medical clinic, and falsely signing medical documents stating that he had provided medical services that he had not.

BURMAN, 54, is a resident of Manhattan whose former husband, Aleksandr Burman, previously pleaded guilty in a related indictment and was sentenced in May 2017 to 10 years in prison.  BURMAN pled guilty before Judge Schofield on November 14, 2017 to charges that, as the registered president and owner of Universal Supply Depot, she fraudulently billed Medicaid more than $3 million for medical equipment, particularly including large amounts of adult diapers, that were in fact not dispensed. BURMAN was also charged with arranging for Paid Patients to exchange their diaper prescriptions for valuable merchandise, such as bed linens, tablecloths, dishes, kitchen appliances, and other housewares.

KATAEV, 49, and TSIRLIN, 47, who are siblings, pled guilty to charges of helping operate two of the fraudulent clinics, where they participated in bribing patients and causing fraudulent bills to be submitted to Medicare and Medicaid. KATAEV pled guilty before Magistrate Judge Barbara C. Moses on November 6, 2017. TSIRLIN pled guilty before Judge Pitman on November 9, 2017.

VOYCHAK, 37, pled guilty before Magistrate Judge Kevin Nathaniel Fox on November 13, 2017 to charges that he helped operate a medical ambulette company that fraudulently billed Medicaid for transportation services that were not medically necessary, and participated a scheme to pay kickbacks to patients at the fraudulent medical clinics.

Each of the defendants pled guilty to Counts One and Two of the indictment. Count One charges the defendants with conspiring to commit health care fraud, mail fraud, and wire fraud; while Count Two charges each defendant with health care fraud. Count One carries a maximum sentence of 20 years in prison, while Count Two carries a maximum penalty of 10 years in prison.

The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as the appropriate sentences will be determined by the Judge.

Mr. Kim praised the investigative work of the New York FBI’s Health Care Fraud Task Force and the New York State Office of the Medicaid Inspector General (“OMIG”).