Pharmacy Manager Convicted In $100,000 Resale Scam

BREWSTER, NY — A drugstore manager who stole $100,000 worth of diabetic test strips and resold them for profit has been convicted of grand larceny and tax fraud in a case that represents one of the largest asset forfeiture cases in the history of the Putnam County District Attorney’s Office

Aatif Khan was a manager at JNR Pharmacy in Brewster. For several years, he ordered diabetes test strips from medical supply distributors, ostensibly on behalf of the pharmacy, and then resold them to various wholesalers, keeping the money.

Khan was convicted of Criminal Tax Fraud in the Fourth Degree because he failed to report any of the income that he acquired from the sale of the stolen property.

"These convictions hopefully will send the message that my office will zealously prosecute anyone who steals from businesses in Putnam County," Putnam County District Attorney Robert V. Tendy said in the announcement. "We take this very seriously and will work with local businesses if there is suspicion of criminal activity."

The case was prosecuted by Assistant District Attorney Nicholas LaStella in collaboration with Senior Criminal Investigator Michael Benvie, also of the District Attorney’s Office. "Gathering the evidence needed to secure this conviction was challenging and it required locating witnesses from across the country--but Mike and Nick were simply relentless in their pursuit of justice and they put together an overwhelming case against Aatif Khan," said Tendy.

Tendy thanked multiple law enforcement agencies and personnel including Investigator Anthony Nappi of the Putnam County Sheriff’s Office, the New York State Department of Taxation and Finance, and Bryan Smyers of the Pennsylvania State Police.

The 33-year-old Newburgh resident's illegally obtained proceeds will be used to amplify law enforcement efforts and to promote the safety of the residents of Putnam County, Tendy said. "The victim has been reimbursed for the loss his business suffered, and Mr. Khan has paid back all of the proceeds of this crime, and then some. In addition to the asset forfeiture we collected, he is on the hook for a significant sum of money in the form of unpaid taxes, penalties, and interest owed to the State of New York Department of Taxation and Finance for his felony tax fraud conviction.”
Sentencing is scheduled for Oct. 27.