Pharma Fraud

March 8, 2018

Kmart Corporation agreed to pay $525,000 to settle claims it violated the False Claims Act by submitting claims for reimbursement to California’s Medi‑Cal program that were not supported by applicable diagnosis and documentation requirements. The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by a Kmart pharmacist. The whistleblower will receive a whistleblower award of roughly $96,500 from the proceeds of the government’s recovery. DOJ (EDCA)

February 8, 2018

Dr. Vincent Koh and his wife and office manager Milly Koh agreed to pay $500,000 for violating the False Claims Act by submitting claims to Medicare for unapproved chemotherapy drugs. DOJ (EDNY)

February 15, 2018

New York announced the arrest and indictment of, as well as a civil asset forfeiture action against, Arkady Goldin, 39, of Brooklyn, and Value Pharmacy, Inc. ("Value"), for allegedly defrauding the New York State Medicaid program out of millions of dollars. Goldin, an owner of Value, is charged with Grand Larceny in the First Degree and other crimes for having allegedly paid kickbacks to a hospital employee for the referral of prescriptions for costly cancer medications. Additionally, prosecutors allege that Value billed Medicaid for over a million dollars of prescription medication it did not have in stock to dispense. The Attorney General’s Medicaid Fraud Control Unit ("MFCU"), also filed an asset forfeiture and civil recovery action against Goldin, Value, and Goldin’s co-owners seeking over $8.7 million in damages and penalties, alleging that Value’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. NY