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Kickbacks lead to $1.5M Medicaid theft in New York

June 11, 2018, Nassau, NY — The owner of a Lynbrook pharmacy pleaded guilty to defrauding Medicaid out of $1.5 million, and will now have to pay it all back and face jail time.

Arkady Goldin, 40, of Brooklyn, owner of Value Pharmacy, Inc. in Lynbrook (which used to be located in Corona) pleaded guilty to second-degree health care fraud and violating the Social Services Law prohibition on the payment of kickbacks related to the State's Medicaid program. The pharmacy pleaded guilty to first-degree grand larceny. He was arrested on the charges in February."

We have zero tolerance for those who defraud the state's Medicaid program," said Attorney General Barbara Underwood. "We will continue to aggressively pursue all individuals who steal from Medicaid to enrich themselves at the expense of those who need the program for their fundamental health care."

Goldin will be sentenced to six months in jail and five years probation. He and the business will have to pay $1.5 million in restitution, along with an additional $1.5 million in financial penalties. Goldin will also have to perform 200 hours of community service.

According to prosecutors, Goldin had a kickback arrangement with a former employee of Nassau University Medical Center. The NUMC employee would steer expensive cancer prescriptions to Value, and in exchange, Goldin paid the employee a monthly cash referral fee and provided him with other items, like tickets to sporting events, an iPad and free meals. State law prohibits medical providers from paying or offering to pay kickbacks in return for referrals.

The NUMC employee pleaded guilty to unlawfully accepting kickbacks related to Medicaid services.

Additionally, as part of the scheme, the investigation uncovered that Value did not purchase sufficient amounts of medication from licensed New York State drug wholesalers that would have been necessary if Value legitimately dispensed prescriptions for which it billed Medicaid. As a result of the unlawful scheme, Medicaid ultimately paid Value over $1.5 million for unlawful claims for medications.

"Arkady Goldin billed Medicaid millions for cancer medications he never dispensed," State Comptroller Thomas DiNapoli said. "Thanks to our partnership with the Attorney General's office, Goldin has been convicted, his corrupt pharmacy closed, and he and his partners will pay the state back for the $3 million total in stolen Medicaid funds."

Source: Malverne Patch

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