Damian Williams, america Lawyer for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Cost of the New York Subject Workplace of the Federal Bureau of Investigation (“FBI”), introduced at this time that BORIS AMINOV, CHRISTY CORVALAN, DAVID FERNANDEZ, DEZYRE BAEZ, and CRYSTAL MEDINA had been charged with partaking in a years-long scheme to defraud Medicaid and different authorities insurance policy out of a minimum of roughly $15 million and exploit a minimum of a whole bunch of low-income people with HIV. The defendants had been arrested this morning and are being introduced at this time in Manhattan federal courtroom earlier than United States Justice of the Peace Decide Gabriel W. Gorenstein. The case has been assigned to United States District Decide Mary Kay Vyskocil.
U.S. Lawyer Damian Williams stated: “As alleged, the defendants orchestrated a scheme to get wealthy by mendacity to Medicaid and different authorities insurance coverage packages and depriving weak HIV sufferers of professional and protected drugs. The defendants allegedly made thousands and thousands of {dollars} by way of submitting fraudulent insurance coverage claims, paying unlawful kickbacks, and shopping for and promoting black-market HIV drugs. In the present day’s arrests ship a crystal-clear message to those who search to line their pockets by mendacity to federal companies tasked with offering healthcare for low-income people and preying on weak members of society – you’ll not get away with it.”
FBI Assistant Director Michael J. Driscoll stated: “The indictment at this time alleges the defendants operated a scheme designed not solely to defraud Medicaid and different authorities insurance policy, but additionally reap the benefits of weak low-income sufferers with HIV. One of these prison exercise abuses taxpayer funded healthcare packages and places those that need assistance at additional threat. The FBI will all the time do no matter is critical to make sure the integrity of healthcare packages like Medicaid and maintain these keen to use these packages accountable.”
In response to the allegations contained within the Indictment:[1]
From a minimum of in or about July 2020 by way of a minimum of in or about February 2023, AMINOV, CORVALAN, FERNANDEZ, BAEZ, and MEDINA operated a scheme that defrauded Medicaid and different authorities insurance policy out of a minimum of roughly $15 million and exploited a minimum of a whole bunch of low-income people with HIV, jeopardizing the well being and security of these weak sufferers. AMINOV was a distributor of black-market HIV drugs to 2 pharmacies situated within the Bronx, New York (the “Pharmacies”), by way of which the scheme was perpetrated. CORVALAN owned and operated the Pharmacies. She bought black-market drugs from AMINOV that had been then disbursed to sufferers, funded unlawful kickbacks to be paid to sufferers, and moreover paid sufferers to promote again their HIV drugs to the Pharmacies, thereby inducing sufferers to forego utilizing the drugs they had been prescribed to deal with their HIV infections. FERNANDEZ, BAEZ, and MEDINA had been staff of the Pharmacies who participated within the day-to-day operation of the scheme, together with by paying unlawful kickbacks to sufferers to acquire their HIV drugs from the Pharmacies and buying-back drugs from the sufferers.
The scheme had two units of victims: authorities insurance coverage packages and the sufferers of the Pharmacies.
First, Medicaid and different authorities insurance coverage packages had been defrauded out of a minimum of roughly $15 million of funds that they made to the Pharmacies to buy prescription HIV drugs for sufferers by way of professional channels. CORVALAN, FERNANDEZ, BAEZ, and MEDINA, nevertheless, as an alternative bought HIV drugs from black-market sources, together with AMINOV. Over the period of the scheme, CORVALAN, FERNANDEZ, BAEZ, and MEDINA used the Pharmacies to pay greater than $6 million to buy black-market HIV drugs from AMINOV, which had been then distributed to sufferers.
Second, the scheme exploited low-income HIV sufferers of the Pharmacies and, within the course of, put these weak sufferers’ well being and security in danger by each paying sufferers kickbacks to fill their drugs on the pharmacies, albeit with black-market medicine, and by encouraging sufferers to promote again their drugs as an alternative of taking them as they had been prescribed to regulate their HIV infections.
The defendants spent the proceeds of the scheme to buy luxurious automobiles, together with a 2021 Mercedes-Benz Maybach with an estimated truthful market worth of roughly $245,000, thousands and thousands of {dollars} in waterfront real-estate, designer garments, and jewellery.
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AMINOV, 47, of Brooklyn, New York, is charged with one depend of conspiracy to commit wire fraud and well being care fraud, which carries a most potential sentence of 20 years in jail; and one depend of conspiracy to commit cash laundering, which carries a most potential sentence of 20 years in jail.
CORVALAN, 41, of the Bronx, New York, is charged with one depend of conspiracy to commit wire fraud and well being care fraud, which carries a most potential sentence of 20 years in jail; one depend of conspiracy to commit cash laundering, which carries a most potential sentence of 20 years in jail; one depend of conspiracy to violate the anti-kickback statute, which carries a most potential sentence of 5 years in jail; and aggravated id theft, which carries a compulsory consecutive sentence of two years in jail.
FERNANDEZ, 24, BAEZ, 22, and MEDINA, 27, the entire Bronx, New York, are charged with one depend of conspiracy to commit wire fraud and well being care fraud, which carries a most potential sentence of 20 years in jail; one depend of conspiracy to violate the anti-kickback statute, which carries a most potential sentence of 5 years in jail; and aggravated id theft, which carries a compulsory consecutive sentence of two years in jail.
The utmost potential sentences on this case are prescribed by Congress and are offered right here for informational functions solely, as any sentencing of the defendants shall be decided by the decide.
Mr. Williams praised the excellent investigative work of the FBI.
This case is being dealt with by the Workplace’s Common Crimes Unit. Assistant U.S. Lawyer Jeffrey W. Coyle is in command of the prosecution.
The fees contained within the Indictment are merely accusations, and the defendants are presumed harmless until and till confirmed responsible.
[1] Because the introductory phrase signifies, the whole thing of the textual content of the Indictment, and the outline of the Indictment set forth herein, represent solely allegations, and each truth described herein needs to be handled as an allegation.