US authorities has accused two owners of more than a dozen pharmacies in New York City and on Long Island of $ 30 million in health care fraud and money laundering.
According to the US Department of Justice, a suspects exploited emergency codes and edits in the Medicare system that went into effect due to the COVID-19 pandemic in order to submit fraudulent claims for expensive cancer drugs that were never provided, ordered or authorized by medical professionals.
Peter Haim, 40, and Arkady Khaimov, 37, were charged with conspiracy to commit health fraud and money laundering.
The defendants were arrested on December 21.
According to the indictment, Khaim and Khaimov received more than $ 30 million for the cancer drug medication Targretin Gel 1% as a result of faking Medicare claims using false prescriptions and doctors’ names without their permission.
An average wholesale price of Targretin Gel 1% is known to be around $ 34,000 for a 60-gram tube.
The indictment also alleges that with the money by the fraud, Khaim and Khaimov set up false wholesale pharmaceutical companies and used their accounts to make it appear as though the pharmacies were sending funds to legitimate companies.
The authorities also indicated that the suspects laundered money through companies in China for distribution to individuals in Uzbekistan.