Hewlett Man Accused Of Stealing $2.5M In Medicaid Funds Charged With Grand Larceny: AG

HEWLETT, NY — A Hewlett man is facing criminal charges this week after he was accused of taking more than $2.5 million from Medicaid to finance the purchase of multiple luxury cars and the mortgage on a Long Island mansion, prosecutors said.

According to attorney general Letitia James’ office, 36-year-old Hewlett resident Nduka Lewis Ekpenyong was indicted Monday on charges of first-degree grand larceny, second-degree healthcare fraud and first-degree scheme to defraud. Ekpenyong's defense counsel could not be reached for comment Tuesday.

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Prosecutors said Ekpenyong submitted over 6,000 claims to Medicaid to cover the purchase of PediaSure with Peptides, a nutritional supplement for children. Despite submitting the Medicaid claims, Ekpenyong, “did not purchase the vast majority of the product” for which he submitted the claims, pocketing over $2.5 million in the process. In fact, prosecutors said he purchased just 10 percent of the amount he billed to Medicaid.

According to prosecutors, Ekpenyong also instructed staff at pediatric practices to change prescriptions from basic PediaSure to PediaSure with Peptides, a change that would allow him and his company to bill Medicaid for more money, prosecutors said. PediaSure with peptides, the prosecution said, “is intended only for children diagnosed with severe gastrointestinal issues.”

These claims and lack of purchase allowed Ekpenyong — through his Brownsville, Brooklyn-based medical supply company, Duke Medical — to pocket the $2.5 million.

“The OAG’s investigation found that Duke Medical’s fraudulent scheme prevented some families in need from getting the formula their children’s pediatricians had ordered, preventing them from receiving the care they needed,” James’ office said.

Once he had the money, Ekpenyong purchased a Bentley and a Range Rover, and paid off the mortgage on a mansion on Long Island, prosecutors said. Those cars and the house are now subject to a civil asset forfeiture action from the attorney general’s office, which would constrain Ekpenyong from selling the house, prosecutors said. That civil forfeiture action is in addition to the criminal case being brought against Ekpenyong, prosecutors said.

“While Nduka Ekpenyong was buying luxury cars with money he allegedly stole from our state’s Medicaid program, families affected by his fraud were struggling to feed their children,” James said. “My office has shut down this heartless fraud scheme for good. This case should send a strong message to anyone seeking to profit by exploiting Medicaid: we will use the full force of the law to bring you to justice.”

Court documents show that Ekpenyong has pleaded not guilty to all three charges. If convicted, Ekpenyong could face between eight-and-a-half and 25 years in prison, prosecutors said. Additionally, the AG’s office is seeking over $7.5 million in damages in the civil asset forfeiture proceeding.