Main | Monday, April 09, 2012

NEW YORK: Pharmacist Busted In Massive $274M Medicaid Scam To Resell HIV Meds

The New York Attorney General's office has announced the arrest of a Long Island MOMS pharmacist and three others who have been accused reselling HIV medications which had been paid for by Medicaid. The drugs resold on the black market may have been expired or otherwise unusable, putting patients at grave risk for potentially fatal infections.
A pharmacist at the high-volume national HIV drug marketing business, which has sites in Brooklyn, Manhattan, and on Long Island, is charged along with three outside conspirators of running a $274 million black market venture. By relabeling prescription drugs of uncertain quality and origin, the defendants allegedly preyed on patients with HIV and cost the Medicaid program $155 million in New York. MOMS, whose parent is listed as Allion Healthcare, a Melville, L.I.-based company, billed New York State Medicaid for at least $155 million for these unusable drugs, according to New York State Attorney General Eric Schneiderman. The AG's office says Allion cooperated in the investigation.
MOMS Pharmacy, which also has an outlet in the Castro, says they too are a victim of the scam and will fully cooperate with federal Medicaid fraud investigators. The four men are charged with grand larceny, money laundering, commercial bribery, and other crimes.

UPDATE: A spokesman from MOM pharmacy writes us with this message.
Anthony D. Luna, President of MOMs Pharmacy, said, “As the alleged fraud was financial in nature, we have no evidence at this time indicating that the distribution of these products caused adverse health consequences to our patients. In fact, MOMS Pharmacy’s stellar track record in improving patients’ outcomes, clinical tests, and the lack of patient or physician complaints during the time period in question all suggest that the drugs we dispensed were effective.”

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