Two New York pharmacy owners have been sentenced for orchestrating a money laundering scheme involving fraudulent Medicare filings during the COVID-19 pandemic.
2 New York Pharmacy Owners Sentenced for COVID-19 Money Laundering Scheme
US District Judge Ann Donnelly in Brooklyn sentenced Peter Khaim to 97 months in prison on Monday. His brother, Arkadiy Khaimov, was sentenced to six years in prison last April.
The brothers pleaded guilty in November 2022 to conspiracy to commit money laundering. They were each ordered to pay over $18 million in restitution. Khaim must also forfeit over $2.7 million, and Khaimov must forfeit over $9.6 million.
False Medicare Claims
Authorities revealed that Peter Khaim and Arkadiy Khaimov used their 16 New York-area pharmacies to submit millions in false Medicare claims.
They exploited COVID-19 emergency billing codes to file fraudulent claims for expensive cancer medications that were neither prescribed nor dispensed, according to court documents.
The 18 million dollar proceeds were funneled through shell companies masquerading as legitimate pharmacy wholesalers. These funds were then transferred to companies in China and eventually distributed to individuals in Uzbekistan.
According to the DOJ, the scheme allowed Khaim and Khaimov to purchase real estate and luxury items with the laundered money.
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