Nassau Pharmacy Owner Charged With Defrauding Medicaid

The owner of a Lynbrook pharmacy was arrested and charged Thursday with defrauding the state Medicaid program of millions of dollars, in a joint announcement made by Attorney General Eric T. Schneiderman and Comptroller Thomas P. DiNapoli.

Arkady Goldin, 39, of Brooklyn, the owner of Value Pharmacy, Inc., which is located at 257 Broadway, allegedly defrauded the state Medicaid program of millions and paid kickbacks to a hospital employee for the referral of prescriptions of costly cancer medications. The AG and Comptroller also claim that the pharmacy billed Medicaid for more than a million dollars of medication it did not even have in stock.

The Attorney General’s Medicaid Fraud Control Unit (MFCU), working with the Comptroller’s office, also filed an asset forfeiture and civil recovery action against Goldin, the pharmacy and Goldin’s co-owners seeking over $8.7 million in damages and penalties, alleging that Value Pharmacy’s owners made millions from these schemes that they funneled through shell companies to purchase personal expenses such as travel, luxury cars and a high-end country club membership.

“Goldin and his accomplices allegedly capitalized off the treatment of others' suffering to steal millions," DiNapoli said. "Through kickbacks and sham billing, Goldin and his partners diverted millions meant to provide treatment to those in need to fund their lifestyles and real estate investments. Attorney General Schneiderman and I will continue to root out public fraud and protect taxpayer funds."

During the course of the alleged scheme, which dates back to at least 2012, authorities say Goldin paid thousands of dollars in kickbacks and other benefits to a former hospital employee. As a result of this illegal kickback scheme, the AG says that Goldin, through the pharmacy, submitted at least $700,000 in false claims for reimbursement to Medicaid. Prosecutors additionally say that Goldin submitted more than $1.2 million dollars in claims to Medicaid certifying that Value Pharmacy had dispensed Neupogen, an expensive cancer treatment medication, to patients when the pharmacy never possessed sufficient quantities of Neupogen to support the claims it submitted.

Goldin and Value Pharmacy were charged with six counts of first-degree grand larceny, second-degree grand larceny, second-degree health care fraud and a violation of the Social Services law prohibiting payment of kickbacks. Goldin was also charged with two counts of first-degree offering a false instrument for filing.

In connection with the arrest, the Attorney General’s Medicaid Fraud Control Unit, working with the Comptroller’s Division of Investigations, also filed an asset forfeiture and civil recovery action against Goldin, Value Pharmacy and other defendants, including Value’s two other owners, Arik Yershov and Barry Beshkin, seeking more than $8.7 million in damages plus penalties.

Court papers allege that Value Pharmacy’s owners made millions from the schemes and funneled the proceeds through shell companies through which they paid for personal expenses, including travel, luxury car payments and a high-end country club membership. Prosecutors say Value Pharmacy’s owners also pooled more than $2.3 million of proceeds to invest in a potentially lucrative real estate opportunity — a newly constructed condominium building in Brooklyn with units listed for as much as $1.75 million.

“We allege that the defendant engaged in an elaborate kickback scheme to line his pockets by defrauding Medicaid and pretending to dispense cancer medication he never actually distributed. Medicaid is meant to be a healthcare safety net for New Yorkers – not a bank account for criminals,” said Schneiderman. “My office will continue to fight for the integrity of the Medicaid program to ensure that our tax dollars are not wasted – and instead put towards helping our most vulnerable citizens, as intended.”

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