LI pharmacy owner sentenced in $16M Medicaid fraud
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A Dix Hills man who admitted his part in a scheme to defraud the state's Medicaid program of more than $16 million was sentenced Monday to 1 to 3 years in prison, state prosecutors said.
Raheel Pervez, 41, was sentenced in Bronx Supreme Court before Justice Steven Barrett, state Attorney General Eric T. Schneiderman's office said in a news release.
Among six individuals involved in a scheme that drained more than $16 million from the state Medicaid program, Pervez pleaded guilty to felony enterprise corruption last month, officials said.
The fraud involved more than a dozen pharmacies that paid HIV patients not to fill their prescriptions and then billed Medicaid for those unfilled prescriptions, the news release said.
Three of the pharmacies, two of which operated as the scam's central hubs, were previously ordered to pay $16.7 million in restitution to Medicaid. In addition to prison time, Pervez has agreed to pay $500,000 in civil forfeiture, Schneiderman's office said.
Pervez "admitted to being the straw owner of the three indicted pharmacies, which were actually owned and controlled by his father, Mujahid 'Peter' Pervez," officials said.
The elder Pervez, charged as the leader of the enterprise, had been excluded from participating in the state Medicaid program because of a previous fraud conviction, officials said. He also was prohibited from owning or controlling any pharmacy that treats Medicaid recipients.
Despite the ban, from January 2009 to April 2012 the enterprise acquired 13 Medicaid-enrolled pharmacies on Long Island and in the Bronx, Manhattan and Queens, defrauded the state and victimized hundreds of Medicaid recipients by submitting false claims to Medicaid for prescription medications that it rarely, if ever, dispensed, the release said.
Raheel Pervez admitted that the three indicted pharmacies were controlled by his father and that he knowingly filed false documents with the state claiming ownership and control of each of these pharmacies, including Langdale Drug & Surgical Supplies in New Hyde Park, officials said.
Indicted along with his son and others on charges of enterprise corruption, grand larceny and other crimes, the elder Pervez fled to his native Pakistan; the attorney general's office is seeking to extradite him to New York, officials said.Raheel Pervez also is excluded from Medicaid as a provider and agreed to not be involved in the health care industry in any manner, officials said.