Nassau Pharmacy Owner Sentenced For Defrauding Medicaid

The owner of Lynbrook pharmacy was sentenced today for defrauding Medicaid of $1.5 million. He will have to pay back all of the money and will face jail time.

Arkady Goldin, 40, of Brooklyn, owner of Value Pharmacy, Inc. in Lynbrook (which used to be located in Corona, Queens) was sentenced to six months behind bars, five years of probation and 200 hours of community service. In addition, Goldin and Value Pharmacy will be required to pay $1.5 million to New York State as restitution for the money stolen from Medicaid, and an additional $1.5 million in financial penalties, for a total of $3 million.

Goldin pleaded guilty in June to second-degree health care fraud and violating the Social Services Law prohibition on the payment of kickbacks related to the State's Medicaid program. The pharmacy pleaded guilty to first-degree grand larceny. He was arrested on the charges in February.

“Mr. Goldin sought to enrich himself at the expense of vulnerable New Yorkers who rely on our Medicaid program. He now faces jail time and millions of dollars in restitution and penalties,” said New York Attorney General Barbara Underwood. “This sentencing should send a clear message that we won’t hesitate to hold fraudsters accountable.”

According to prosecutors, Goldin had a kickback arrangement with a former employee of Nassau University Medical Center. The NUMC employee would steer expensive cancer prescriptions to Value, and in exchange, Goldin paid the employee a monthly cash referral fee and provided him with other items, like tickets to sporting events, an iPad and free meals. State law prohibits medical providers from paying or offering to pay kickbacks in return for referrals.

The NUMC employee pleaded guilty to unlawfully accepting kickbacks related to Medicaid services.

Additionally, as part of the scheme, the investigation uncovered that Value did not purchase sufficient amounts of medication from licensed New York State drug wholesalers that would have been necessary if Value legitimately dispensed prescriptions for which it billed Medicaid. As a result of the unlawful scheme, Medicaid ultimately paid Value over $1.5 million for unlawful claims for medications.

“Mr. Goldin’s jail sentence and order to repay millions to the state should serve as a warning,” said State Comptroller Thomas P. DiNapoli. “Mr. Goldin defrauded a program meant to help vulnerable New Yorkers and is being held accountable.”

Photo courtesy Google Maps