Welcome, Guest! - or
Easy to remember!  »  VinNews.com

New York - 48 Charged In Massive Medicaid Fraud Case

Published on: July 17, 2012 05:38 PM
By: AP
Change text size Text Size  
Bookmark and Share
In this undated photo provided by the Federal Bureau of Investigation, a large supply of vials, pills and other medical supplies seized by the FBI in a drug diversion scheme are shown in the FBI’s evidence room in New York. (FBI, Matthew Coleman — AP Photo)In this undated photo provided by the Federal Bureau of Investigation, a large supply of vials, pills and other medical supplies seized by the FBI in a drug diversion scheme are shown in the FBI’s evidence room in New York. (FBI, Matthew Coleman — AP Photo)

New York -  A nationwide prescription drug ring bought mountains of HIV medications and other drugs from down-and-out Medicaid recipients in New York City, then marketed the pills to pharmacies that dispensed them to unsuspecting consumers, authorities said Tuesday.

Federal prosecutors in Manhattan detailed the scheme at a news conference announcing charges against 48 defendants.

Advertisement:

Arrests were made in New York, Pennsylvania, Massachusetts, Florida and Texas. The FBI also seized more than 250,000 pills worth $16 million.

The defendants “ran a black market in prescription pills involving a double-dip fraud of gigantic proportions,” said U.S. Attorney Preet Bharara.

Unlike cases involving prescription painkillers and other addictive narcotics, the ring specialized in expensive medications - some worth more than $1,000 a bottle - for serious illnesses like HIV, schizophrenia and asthma. Authorities estimated that Medicaid lost at least $500 million in reimbursements over at least five years on pills diverted into the secondhand market.

“The scheme was a theft, pure and simple, from a program funded by taxpayers,” said Janice K. Fedarcyk, head of the FBI’s New York office.

Though the fraud created a risk that patients could end up using secondhand drugs that were outdated or degraded from storage in car trunks or storage lockers, authorities said there were no reports that anyone was harmed.

According to a criminal complaint, the fraud emanated from street corners in poor neighborhoods in Manhattan and the Bronx, where some of the defendants would buy pills from a high concentration of Medicaid beneficiaries who originally got them at little or no cost. In some instances, the buyers would pay $50 for a bottle of pills worth several hundred dollars.

The sellers “were vulnerable enough that they’d like to make a little money rather than take their medicine,” Bharara said.

The ring doctored the drugs to make them look like they came from legitimate distributors by removing labels with the patients’ names on them and by sometimes backdating expiration dates, authorities said. The pills would eventually make their way to front companies that supplied pharmacies.

The investigation relied in part on a cooperator who was arrested last month during a raid on a storage facility in North Bergen, N.J., the complaint said. During the search, agents discovered 10,369 pill bottles and hundreds of counterfeit labels.


More of today's headlines

Washington - Federal Reserve Chairman Ben Bernanke sketched a bleak picture of the U.S. economy Tuesday — and warned it will darken further if Congress doesn't reach... Albany, NY - Gov. Cuomo isn’t the only state leader who avoids emailing: State Assembly Speaker Sheldon Silver says he rarely uses electronic communications. “I...

 

Total13

Read Comments (13)  —  Post Yours »

1

 Jul 17, 2012 at 07:44 PM Blank check Says:

The medicaid system is like a blank check. Recipients with straight medicaid often have little limits on drug use while many working stiffs have $60 copays for expensive drugs-If they are covered at all.
I think those that flagrantly abuse the system should be excluded from all medical care.
I also think their MDs should be considered to see if they knowingly prescribed drugs they knew were destined for resale. HIV patients often get cocktails so it would be hard to know for sure.

2

 Jul 17, 2012 at 09:27 PM Nareshkiet Says:

Reply to #1  
Blank check Says:

The medicaid system is like a blank check. Recipients with straight medicaid often have little limits on drug use while many working stiffs have $60 copays for expensive drugs-If they are covered at all.
I think those that flagrantly abuse the system should be excluded from all medical care.
I also think their MDs should be considered to see if they knowingly prescribed drugs they knew were destined for resale. HIV patients often get cocktails so it would be hard to know for sure.

Don't be silly and put down all legitimate Medicaid recipients because of 100th of 1 percent of crooks.

The real crooks are the pharmaceutical companies who charge you, and charge your insurance, $1,000 per bottle, when it costs them 1 cent per pill to manufacture.

The largest part of the Gross National Product is the Medical Industry who overcharges for their so called "legit" services a million times more than what they need to charge, to be highly profitable.

No matter how much money a company invests to "invent" a new drug, it does not justify charging $100 per pill when it costs them 1 cent per pill, to produce.

That is highway robbery done "legally" and it's why our economy, with ObamaCare is all, in der'erd.

Likewise there is no reason (in spite of his so called high "expenses" that any doctor needs to charge $100,000 for a 1 to 3 hour surgery (although they cry with crocodile tears that a huge 1 % of that fee is "nebech" for his "high" malpractice insurance.

Has anyone ever seen a "poor doctor" applying for NEBECH for medicade or food stamps nebech...they are SO poor nebech nebech.

3

 Jul 17, 2012 at 10:14 PM Reb Yid Says:

Reply to #2  
Nareshkiet Says:

Don't be silly and put down all legitimate Medicaid recipients because of 100th of 1 percent of crooks.

The real crooks are the pharmaceutical companies who charge you, and charge your insurance, $1,000 per bottle, when it costs them 1 cent per pill to manufacture.

The largest part of the Gross National Product is the Medical Industry who overcharges for their so called "legit" services a million times more than what they need to charge, to be highly profitable.

No matter how much money a company invests to "invent" a new drug, it does not justify charging $100 per pill when it costs them 1 cent per pill, to produce.

That is highway robbery done "legally" and it's why our economy, with ObamaCare is all, in der'erd.

Likewise there is no reason (in spite of his so called high "expenses" that any doctor needs to charge $100,000 for a 1 to 3 hour surgery (although they cry with crocodile tears that a huge 1 % of that fee is "nebech" for his "high" malpractice insurance.

Has anyone ever seen a "poor doctor" applying for NEBECH for medicade or food stamps nebech...they are SO poor nebech nebech.

The cost of developing the drugs has to be included in what you're calling the "cost of production." And the cost of running a medical practice has to be included in tour assessment. Otherwise, according to your assessment, teachers should get paid nothing, since it doesn't cost them anything to teach.

Besides which, no doctor gets paid 100K for an operation.

4

 Jul 17, 2012 at 10:34 PM Blank check Says:

Reply to #2  
Nareshkiet Says:

Don't be silly and put down all legitimate Medicaid recipients because of 100th of 1 percent of crooks.

The real crooks are the pharmaceutical companies who charge you, and charge your insurance, $1,000 per bottle, when it costs them 1 cent per pill to manufacture.

The largest part of the Gross National Product is the Medical Industry who overcharges for their so called "legit" services a million times more than what they need to charge, to be highly profitable.

No matter how much money a company invests to "invent" a new drug, it does not justify charging $100 per pill when it costs them 1 cent per pill, to produce.

That is highway robbery done "legally" and it's why our economy, with ObamaCare is all, in der'erd.

Likewise there is no reason (in spite of his so called high "expenses" that any doctor needs to charge $100,000 for a 1 to 3 hour surgery (although they cry with crocodile tears that a huge 1 % of that fee is "nebech" for his "high" malpractice insurance.

Has anyone ever seen a "poor doctor" applying for NEBECH for medicade or food stamps nebech...they are SO poor nebech nebech.

In my previous post I did not mean to "put down" medicaid recipients. I DID MEAN to put down the system and those that planned and allowed such a system to develop.

I agree that most drugs are vastly overpriced but I realize that it costs loads of money to research and develop drugs including those that never make it to production.

I personally agree that some surgeons are paid too well while it can be argued that Internists should be paid better.

5

 Jul 17, 2012 at 10:35 PM klugshaft Says:

Reply to #2  
Nareshkiet Says:

Don't be silly and put down all legitimate Medicaid recipients because of 100th of 1 percent of crooks.

The real crooks are the pharmaceutical companies who charge you, and charge your insurance, $1,000 per bottle, when it costs them 1 cent per pill to manufacture.

The largest part of the Gross National Product is the Medical Industry who overcharges for their so called "legit" services a million times more than what they need to charge, to be highly profitable.

No matter how much money a company invests to "invent" a new drug, it does not justify charging $100 per pill when it costs them 1 cent per pill, to produce.

That is highway robbery done "legally" and it's why our economy, with ObamaCare is all, in der'erd.

Likewise there is no reason (in spite of his so called high "expenses" that any doctor needs to charge $100,000 for a 1 to 3 hour surgery (although they cry with crocodile tears that a huge 1 % of that fee is "nebech" for his "high" malpractice insurance.

Has anyone ever seen a "poor doctor" applying for NEBECH for medicade or food stamps nebech...they are SO poor nebech nebech.

Clearly you could care less about new drugs and medical advancement. Let's go back to the time when strep could kill. Research is quite costly....the cost of manufacturing the actual final product is not even factored in to the cost!
After going to school for 10 years and being in debt over their heads, Doctors are entitled to make a decent living. You can always have your shoemaker do your surgery for a better price. Obamacare will make sure our best and brightest pursue any career aside form medicine.

6

 Jul 18, 2012 at 12:45 AM si girl Says:

The whole healthcare system is wrong because there is no healthcare system. Its a private enterprise where profit means more than human health. Research is costly but other countries have great research scientists and groups like Israel, Canada, Cuba(surprise, surprise). I don't paint everything in black color because some elements of American Medicine are great. In general though its bad since there is no healthcare system. I am actually for free market economy but healthcare does not belong there.

7

 Jul 18, 2012 at 01:13 AM Supermom Says:

I have yet to find a doctor that cares about the patient. Don't feel bad for the drug companies they have plenty of money. So much so that the drs are given money, gifts & expensive vacations to push pills to patients. In a lot of ways the medical world has come forward, but in other ways it's gone backwards. Check out drmercola.com if you'd like to be enlightened. Btw there are natural stuff that can cure strep, & no, medicine will not cure it. It will only suppress it & it'll come right back when the immune system is compromised again. Speaking from my own experience

8

 Jul 18, 2012 at 08:43 AM jewru Says:

The problem is with the doctors also.

I went to a doctor that took my insurance. A few weeks later, I received a letter from the insurance company, that they denied the claim and took their payment of $96 back.

The doc's office sent me a detailed bill for over $600!
When I spoke to the office and told them that I will give them the amount insurance paid, they wouldn't hear of it, and told me they are going to send it to collections! Ganovim!

Is this how a yid should run his office? Nowadays a yarmulka means nothing! Don't be fooled!

That is the true fraud!!!

9

 Jul 18, 2012 at 10:13 AM awacs Says:

Reply to #8  
jewru Says:

The problem is with the doctors also.

I went to a doctor that took my insurance. A few weeks later, I received a letter from the insurance company, that they denied the claim and took their payment of $96 back.

The doc's office sent me a detailed bill for over $600!
When I spoke to the office and told them that I will give them the amount insurance paid, they wouldn't hear of it, and told me they are going to send it to collections! Ganovim!

Is this how a yid should run his office? Nowadays a yarmulka means nothing! Don't be fooled!

That is the true fraud!!!

If he takes your insurance, i.e., he is in-network, your insurance company should back them up. Contact them.

10

 Jul 18, 2012 at 11:56 AM A Says:

Reply to #7  
Supermom Says:

I have yet to find a doctor that cares about the patient. Don't feel bad for the drug companies they have plenty of money. So much so that the drs are given money, gifts & expensive vacations to push pills to patients. In a lot of ways the medical world has come forward, but in other ways it's gone backwards. Check out drmercola.com if you'd like to be enlightened. Btw there are natural stuff that can cure strep, & no, medicine will not cure it. It will only suppress it & it'll come right back when the immune system is compromised again. Speaking from my own experience

Please don't put all doctors in your one size fits all category. I have been to some wonderful caring doctors, especially my internist who actually called during a vacation to talk to me when some tests came back with results that were worrisome. On the other hand I've seen some doctors, most notably surgeons, who I wouldn't wish on anyone. Doctors are, after all, human beings and they vary greatly in their characters and behavior towards their patients.

11

 Jul 18, 2012 at 04:58 PM schwartzi Says:

Reply to #3  
Reb Yid Says:

The cost of developing the drugs has to be included in what you're calling the "cost of production." And the cost of running a medical practice has to be included in tour assessment. Otherwise, according to your assessment, teachers should get paid nothing, since it doesn't cost them anything to teach.

Besides which, no doctor gets paid 100K for an operation.

which doctor gets paid 100k for surgery? try some of em from park ave in n.y.c.
or other specialists.

12

 Jul 18, 2012 at 05:37 PM OccupyAgudah Says:

Reply to #7  
Supermom Says:

I have yet to find a doctor that cares about the patient. Don't feel bad for the drug companies they have plenty of money. So much so that the drs are given money, gifts & expensive vacations to push pills to patients. In a lot of ways the medical world has come forward, but in other ways it's gone backwards. Check out drmercola.com if you'd like to be enlightened. Btw there are natural stuff that can cure strep, & no, medicine will not cure it. It will only suppress it & it'll come right back when the immune system is compromised again. Speaking from my own experience

1)I have met doctors that care deeply about their patients. That is not however a necessary criteria in order to be a good doctor.

2) Strep is a virus that you can catch more then once. It is not a disease that you can cure. Before you post your naturalistic hogwash and attack medicine pick a proper affliction. Please do not publicly advocate against taking anti-biotics which usually have minimal side effects and save lives.

13

 Jul 18, 2012 at 10:13 PM Supermom Says:

Reply to #12  
OccupyAgudah Says:

1)I have met doctors that care deeply about their patients. That is not however a necessary criteria in order to be a good doctor.

2) Strep is a virus that you can catch more then once. It is not a disease that you can cure. Before you post your naturalistic hogwash and attack medicine pick a proper affliction. Please do not publicly advocate against taking anti-biotics which usually have minimal side effects and save lives.

1) your very lucky you've found a dr that is nice as most of them are just here to line their fat wallets. Then there is their pride. They will never tell a patient to try something different, as that will show they don't know everything.
2) as someone that's been treated for strep a few times a year with medication, over many years that led to a bleeding ulcer, I should know if antibiotics is harmful. Which btw my dr said is a lifelong condition & I'll have to adjust to it. Well guess what? I didn't want to learn to live with it so I looked into health kinesiology & Hashem sent me a complete Refuah shelama. I haven't been on a single pill nor have I had a single case of strep in 7 years! Never felt younger or healthier!

14

Sign-in to post a comment

Scroll Up
Advertisements:

Sell your scrap gold and broken jewelry and earn hard cash sell gold today!