Attorney General James Announces Conviction Of Owner Of Three Manhattan Pharmacies For Defrauding Medicaid

Pharmacist Faces Up to Six Years in Prison and will Repay over $3 Million for Role in HIV Drug Fraud Scheme 

  Attorney General Letitia James announced the guilty pleas of licensed pharmacist Hin T. Wong (“Wong”), 50, of Manhattan, and her companies New York Pharmacy Inc. (“NY Pharmacy”), NYC Pharmacy Inc. (“NYC Pharmacy”), and NY Healthfirst Pharmacy Inc. (“NY Healthfirst”) in connection with a multi-million dollar Medicaid fraud scheme involving HIV drugs.   

“This Defendant, a licensed pharmacist, exploited some of our state’s most vulnerable patients to steal millions of dollars reserved to provide New Yorkers with essential healthcare,” said Attorney General Letitia James.  “My office will continue to hold accountable health care professionals who forsake their professional responsibility to their patients and instead choose to use their professional status to line their pockets.” 

Wong pled guilty in Manhattan Supreme Court before Justice Mark Dwyer to Grand Larceny in the First Degree, a class “B” felony.  Wong will be sentenced to two to six years in state prison and will forfeit over $3,600,000. All of her pharmacies, which are now closed, were also convicted: 

•  NY Pharmacy, formerly at 131 Walker St. in Manhattan, pleaded guilty to Grand Larceny in the First Degree, a class “B” felony; 
• NYC Pharmacy, formerly at 203 East 121st St. in Manhattan,  pleaded guilty to Grand Larceny in the First Degree; and  
• NY Healthfirst Pharmacy, formerly at 2021 First Ave. in Manhattan, pleaded guilty to Grand Larceny in the Second Degree, a class “C” felony. 

In court papers, Wong admitted to paying or directing her employees to pay kickbacks to several undercover agents from the Attorney General’s Medicaid Fraud Control Unit (“MFCU’) in return for their agreement to fill their HIV prescriptions at her pharmacies. Wong’s pharmacies then billed and were eventually paid over $60,000 by Medicaid for refills on prescriptions that Wong’s pharmacies either did not dispense to the MFCU undercover agents, a scheme known as “auto-refilling,” or that were predicated on the payment of an unlawful kickback. 

State law strictly prohibits all medical providers, including pharmacies, from paying or offering to pay kickbacks to another person in return for the referral of medical services ultimately paid for by Medicaid.     

The investigation showed that from January 2014 to August 2017, Wong’s pharmacies did not purchase a sufficient inventory of medication from licensed drug wholesalers to account for the quantity of medication -- much of which was for HIV drugs -- for which Wong’s pharmacies billed Medicaid and Medicaid Managed Care Organizations (“MCOs”). Relying on thousands of false claims for payment filed by Wong’s pharmacies, Medicaid and Medicaid MCOs paid Wong’s pharmacies over $3.5 million. 

In conjunction with the criminal case, the Attorney General also filed a civil asset forfeiture and New York False Claims Act action against Wong, her pharmacies and another entity owned by Wong, KT Studio Inc. a/k/a/ Dove Cat Studio a/k/a C’est La Vie Studio.  As part of this action, the court approved the Attorney General’s application to freeze Wong’s assets, including several bank accounts, to preserve stolen money.   Under the civil settlement, Wong will surrender over $3,600,000 – including over $700,000 in seized cash -- all of which will be returned to the New York Medicaid program. 

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 assistance in this investigation. The Attorney General also thanks Medicaid MCOs Amida Care and Wellcare; pharmacy benefit managers CVS Caremark and Optum RX; and pharmaceutical wholesalers HD Smith and McKesson for their cooperation with the investigation. 

Attorney General James reminds New Yorkers that fraud also causes bad healthcare. Here are some things to look out for when you receive Medicaid benefits and have a prescription: 

• Did someone offer you money to send your prescription to a particular pharmacy? 

• Did someone offer you money to not pick up a medications for which you had a prescription?   
• Did someone offer to “buy” your medications from you? 
• Have you ever been told by a pharmacy you chose that it couldn’t fill your prescription because another pharmacy was billing your prescriptions? 
• Did you receive medication after the expiration date on the label? 
• Did your medication appear to be dirty or improperly stored?  

New Yorkers can report suspected fraud to the Attorney General’s toll-free Medicaid Fraud Hotline, at (800) 771-7755 or online at ag.ny.gov/medicaid-fraud/contact. 

MFCU’s investigation was conducted by Investigator Nefertiti Clarke with the assistance of Supervising Investigator Dominick DiGennaro and Deputy Chief Investigator Kenneth Morgan. The financial analysis for the investigation was conducted by Principal Auditor-Investigator Cristina Marin and Auditor-Investigator Megan Scott with the assistance of New York City Regional Deputy Chief Auditor Jonathan Romano and New York City Regional Chief Auditor Thomasina Smith. 

83rd Assembly District Democratic Club Breakfast

  It was a packed house at the Eastwood Manor as the Democratic Club of the 83rd Assembly District held their petition breakfast where the few candidates on the ballot, and local elected officials spoke to club members. After the breakfast attendees picked up petitions to get signatures for Bronx District Attorney Darcel D. Clark, Civil Court Judge candidates Matthew P. Raso, Michael A. Frishman, and Jessica I. Bourbon, along with a slate of Judicial Delegates and Alternates. 

Above - The table where Bronx Borough President Ruben Diaz Jr., N.Y. State Assembly Speaker Carl Heastie, Congressman Eliot Engel, State Senator Jamaal Bailey, Bronx District Attorney Darcel Clark are seated at. Councilman Andy King arrived from an event a short time later. 

Below - Bronx BP Ruben Diaz Jr. gives a few remarks about the candidates and elected officials representing the 83rd assembly district.

Above - State Senator Jamaal Bailey says a few words, as his mentor and former employer Assemblyman Carl Heastie listens to his pupils words.

Below - Bronx DA Darcel Clark who is not allowed to talk politics except in the year she is up for re-election thanks the 83rd A.D. Democratic Club for endorsing her. 

Senator Rivera Hosts 7th Annual Black History Month Celebration

  At the William Hodson Community Center located at 1320 Webster Avenue State Senator Gustavo Rivera held his 7th Annual Black History Month celebration Thursday afternoon. There was entertainment by the Renaissance Youth Center, and others. Senator Rivera handed out awards to several volunteers for their service to the community.

Above and Below - Individual members of the Renaissance Youth Center came forward to give inspirational thoughts about what Black History Month means to them.

Above - Senator Rivera gives Jessica and Beatrice Carrion of Renaissance Youth Center citations.

Below - Senator Rivera gives  citation to Renaissance Youth Center director Ms. Jeanette Diaz a citation also.

BP DIAZ LAUNCHES ‘CAMP JUNIOR’ AT ANNUAL ‘STATE OF THE BOROUGH’ ADDRESS

  Bronx Borough President Ruben Diaz Jr. announced the founding of “Camp Junior” at Harriman State Park during his annual “State of the Borough” address, his tenth since taking office in 2009.

This new camp was created in memory of Lesandro “Junior” Guzmán-Feliz, a 15-year-old who was murdered at the hands of gang members in June and galvanized the city, spawning the “Justice for Junior” campaign. “Camp Junior” will be administered by The Fresh Air Fund and has the full support of Lesandro’s parents, Leandra Feliz and Lisandro Guzman.

“Junior was everything we want our children to be. He was a good student and a member of the NYPD Explorers. He was kind to his parents and his neighbors. His candle was dimmed to soon, but he can be a shining light for generations. Starting this summer, we will give hundreds of Bronx kids a chance to learn by his example,” said Borough President Diaz during the speech.

“Camp Junior” has been created through a partnership between the borough president’s office, The Fresh Air Fund and the New York State Department of Parks. The program will take hundreds of Bronx kids upstate each summer to enjoy recreation and educational opportunities free of charge, and will include an anti-violence curriculum.



Borough President Diaz encouraged those who were touched by Junior’s story to donate to The Fresh Air Fund, who will administer “Camp Junior,” and help make the new program a success.

“When this tragedy struck, I heard from so many from across the nation who asked how they could help our community heal,” said Borough President Diaz. “The answer is simple: help Camp Junior succeed.”

To support “Camp Junior” donate online at www.crowdrise.com/campjunior, text JUNIOR to 41411 or call The Fresh Air Fund directly at 212-897-8900. Information on how to sign up for “Camp Junior” can be found at https://on.nyc.gov/2BKivCm.

Borough President Diaz discussed a wide variety of other issues during the speech, including the state of New York City Public Housing (NYCHA) as well as his #CleanUpNYCHA social media campaign, which uses social media to drive change at public housing developments. The borough president also announced new legislation, in partnership with Assembly Member Marcos Crespo and State Senator Zellnor Myrie, to give NYCHA tenants reductions in their rent when they go without basic services, in the same matter that a rent stabilized tenant in a private building would have. 

“Many would say that the worst landlord in New York City is New York City,” said Borough President Diaz. “I agree.”

Borough President Diaz spoke of the City’s plans to build a new jail at the site of the tow pound in Mott Haven, reiterating his opposition to the plan and pointing out that a better site for the jail exists adjacent to the Bronx Hall of Justice at the family court building.

“Criminal justice reform experts say jails should be located next to court houses for myriad humane reasons in the interest of justice. Why not here?” said Borough President Diaz. “Nothing is set in stone. If they can make changes to their plans in Manhattan, why can't they make changes in The Bronx?”

The borough president called for a wholesale review of the Third party Transfer program, which the de Blasio administration has proposed to expand as a vehicle for removing buildings from bad landlords.

“Bad landlords should be held accountable. However, the TPT program has been used to seize homes from minority homeowners in The Bronx and Brooklyn,” said Borough President Diaz. “We need a wholesale review of this program before we expand it.”

Borough President Diaz also called for expanded MWBE opportunities at the City’s pension funds, announcing that he would be introducing a resolution as a trustee on the New York City Employees Retirement System (NYCERS) board mandating that the board allocate double the percentage of its funds currently managed by MWBEs.

“My resolution requires that diversity increase until our fund managers better represent the diversity of our city,” said Borough President Diaz. “Women are 60 percent of NYC’s workforce, and minorities comprise approximately fifty-five percent. Together, we will level the playing field at our pension fund.”

On the upcoming Census, Borough President Diaz urged all New Yorkers to participate in order to preserve New York’s clout in Washington, D.C., in regards to funding and political representation. He also stated that he would not fill out any question on the Census that asked for his citizenship status, and encouraged those in attendance to follow his lead.

“I will not answer any question asking about my citizenship status, and I encourage my fellow citizens to do the same,” said Borough President Diaz. “Remember, we are a sanctuary city, and those principles will guide our participation in the Census.”

The borough president closed his speech by noting how his borough has met the challenges of the past decade, and calling for New York to follow the example set by The Bronx.

“The challenge of our time is to provide a chance and an equitable city while keeping New York's soul - a collection of our hopes, love, and creative endeavors alive, well, and burning strong. For, all New Yorkers need is a chance, an opportunity, and equity to succeed,” said Borough President Diaz.

Dawn Smalls, Candidate for Public Advocate, Raises Over $1M Through Fundraising and Public Funding

Dawn Smalls, candidate for Public Advocate, has raised over $1M, the third highest amount in the crowded race. The funds are comprised of fundraising efforts and New York City's matching funds program.

 

As a first-time candidate, she continues to break barriers as reports circulate about how hard it is for women to raise money in political campaigns. She was the first woman to qualify for NYC's matching funds and has been the highest female fundraiser in the race.

 

Smalls has released a video to celebrate the campaign and encourage voters to head to the polls. The video highlights her work on the campaign trail across the five boroughs, as well as the campaign's achievements holding with elected officials who had a head start with campaign funds and establishment support.

 

"I'm so proud of the campaign we've run over the past few months," said Smalls. "I've seen support grow across the five boroughs, people are ready to support a new crop of diverse candidates with the experience, the wherewithal, and the know-how to GET RESULTS."

 

Learn more at dawnfornewyork.com

New Bronx Chamber of Commerce - Upcoming Chamber Sponsored Events and Chamber Member Services!

Bronx Man Charged With Murder-For-Hire Conspiracy

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging SYDNEY SCALES, a/k/a “Sid,” a/k/a “Moe Black,” with conspiracy to commit murder for hire, as well as narcotics and firearms offenses.  A second defendant on the Indictment, ERNEST HORGE, a/k/a “Ern,” a/k/a “Mac,” is charged with narcotics and firearms offenses.

SCALES was arrested this morning in the Middle District of Pennsylvania and will be presented today in Manhattan federal court before U.S. Magistrate Judge Ona T. Wang.  Horge was arrested in the Northern District of New York, and he will be presented there today.  The case has been assigned to the Honorable Laura Taylor Swain. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged in the indictment, Scales and Horge were responsible for significant narcotics – including fentanyl – and firearms offenses.  Scales allegedly then conspired to kill a rival drug dealer.  This alleged drug dealing and violence are intolerable, and thanks to the outstanding work of HSI and the NYPD, Scales and Horge now face significant federal charges.”

HSI Special Agent-in-Charge Angel M. Melendez said:  “This man is alleged to have contracted the killing of a rival drug dealer to further his position in the dark world of narcotics distribution and gun wielding.  There is no place in our communities for an individual pushing drugs onto our streets and using guns for intimidation.  Law enforcement has strengthened partnerships across to board to rid our neighborhoods of those who choose to plague our city with violence and drugs.”

As alleged in the Indictment unsealed today in Manhattan federal court and in other court papers and proceedings[1]:

From in or about 2016 through in or about 2019, both SCALES and HORGE participated in a narcotics conspiracy involved in the distribution of crack cocaine, cocaine, heroin, and fentanyl, in the Bronx and elsewhere.  SCALES and HORGE also used, carried, and possessed firearms, which were brandished and discharged, in connection with the narcotics conspiracy.  In addition, in or about June 2017, SCALES conspired to commit murder for hire, agreeing to compensate other individuals in return for their locating and killing at least one rival drug dealer.  SCALES also used, carried, and possessed firearms in connection with the conspiracy to commit murder for hire.          

A chart containing the names and maximum penalties for each defendant is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Berman praised the outstanding investigative work of HSI and the NYPD’s Bronx Violent Crimes Squad.

The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Frank Balsamello, Sarah Krissoff, and Gina Castellano are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. 

[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.                                                                                                                                                                                                         

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Narcotics Conspiracy 21 U.S.C. § 846	SYDNEY SCALES ERNEST HORGE	Life in prison Mandatory minimum of 10 years in prison
2	Using, Carrying, and Possession of Firearms, which were Brandished and Discharged, in Connection with a Drug Trafficking Crime 18 U.S.C. §§ 924(c)(1)(A)(iii), 2	SYDNEY SCALES ERNEST HORGE	Life in prison Mandatory minimum of 10 years in prison
3	Conspiracy to Commit Murder For Hire 18 U.S.C. § 1958(a)	SYDNEY SCALES	10 years in prison
4	Using, Carrying, and Possession of Firearms, in Connection with the Conspiracy to Commit Murder for Hire 18 U.S.C. §§ 924(c)(1)(A)(i), 2	SYDNEY SCALES	Life in prison Mandatory minimum of 5 years in prison

Former “Hot Boys” Robbery Crew Member Sentenced To 279 Months In Prison In Connection With The Murder Of Kelly Diaz And Other Crimes

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ALVARADO DOMINGUEZ, a/k/a “Jochi,” 32, was sentenced today to 279 months in prison for his participation in the “Hot Boys” robbery crew, including an October 27, 2006, robbery that resulted in the murder of Kelly Diaz.  DOMINGUEZ pled guilty on August 13, 2018, before Magistrate Judge Stewart D. Aaron to participating in a racketeering conspiracy and conspiring to distribute marijuana.  His plea was accepted today by U.S. District Judge Valerie E. Caproni, who also imposed sentence.

U.S. Attorney Geoffrey Berman said:  “Alvarado Dominguez and the members of his crew conducted terrifying, armed home invasions in upper Manhattan and the Bronx.  During one of those robberies, Kelly Diaz was murdered.  Today’s sentence protects the public from Dominguez for a long time to come.”

According to the Indictment, other filings in Manhattan federal court, and evidence presented in court in connection with the sentencing:

From at least 2006 through 2017, ALVARADO DOMINGUEZ, a/k/a “Jochi,” and other members and associates of a racketeering enterprise known as the “Hot Boys,” committed murder, assault, robbery and burglary, used firearms, and distributed controlled substances, including cocaine, heroin, marijuana, and prescription opiates. 

On October 27, 2006, DOMINGUEZ and other members of the Hot Boys robbed Diaz and his wife in their home in Washington Heights.  In the course of that robbery, Diaz was shot and killed.

Mr. Berman praised the outstanding work of the FBI and the NYPD’s Grand Larceny Division in this investigation.