Wednesday, October 28, 2020

Pharmacy Owners Found Guilty in $35million Health Care Fraud and Money Laundering Scheme

-

A federal jury found two Los Angeles pharmacy owners guilty yesterday for their participation in a $35 million health care fraud and money laundering scheme to bill Medicare for medications that were never provided and to launder the proceeds of the fraud.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office, Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office, Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office, and Special Agent in Charge Kurt Mueller of the California Department of Justice made the announcement.

After an 11-day trial, Aleksandr Suris, 51, and Maxim Sverdlov, 44, both of Sherman Oaks, California, were found guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.

Suris was also found guilty of one additional count of conspiracy to commit health care fraud and six additional counts of health care fraud.  Both defendants were found not guilty of three counts of healthcare fraud.  Sentencing has been scheduled for Nov. 18, 2019, before U.S. District Court Judge S. James Otero of the Central District of California, who presided over the trial.

- Advertisement -

According to the evidence presented at trial, from 2012 to 2015, Suris and Sverdlov fraudulently billed Medicare and CIGNA for prescription medications that were not actually dispensed to beneficiaries by the pharmacy they owned, Royal Care Pharmacy (Royal Care).

Related: Florida Pharmacist Convicted in $100M Pharmacy Fraud Scheme

In order to hide the fraud, Suris and Sverdlov obtained fake invoices from a co-conspirator to make it appear as if Royal Care had purchased the medicines it had billed Medicare for when it had not.  The evidence further established that Suris and Sverdlov also used these fake invoices to launder the proceeds of the fraud through the co-conspirator.

This case was investigated by the HHS-OIG, FBI, IRS-CI, and the California Department of Justice, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. Assistant Chief Daniel J. Griffin and Trial Attorney Robyn N. Pullio of the Fraud Section are prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

- Advertisement -

In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

MUST READ

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Two U.S. Navy service members get prison for defrauding military insurance program

Two U.S. Navy service members were sentenced in San Diego federal court Friday for their roles in an insurance fraud scheme that involved making false medical claims to...

Spanish police arrests operator of Crypto Arbitrage firm Arbistar on fraud charges

The CEO of Arbistar the Spanish investment company, Santiago Fuentes, has been arrested and arraigned on charges of fraud, belonging to a criminal organization...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

UAE suspends licences of 200 law firms over anti-money laundering compliance

Practicing licences of 200 law firms in the UAE have been suspended for a month for not following the prescribed procedures to combat money...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks