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State suspends license of LI doc in kickback case

The state health department suspended the license of an infectious disease doctor from Albertson after he pleaded guilty to paying his patients kickbacks to use his three pharmacies.

Last September, Dr. Muhammad Ejaz Ahmad, 52, who treated HIV-positive patients at his Brooklyn office, was sentenced in the U.S. District Court of the Southern District to 21 months in prison and three years supervised release. He was also ordered to pay $1.7 million in restitution.

He pleaded guilty to the scheme in May 2008 and is set to begin his sentence May 7, according to the U.S. attorney's office.

From January 2004 to August 2006, Ahmad offered HIV-positive patients on Medicaid a $40 kickback at every visit, even though he was reimbursed only $30 by the state, the government said.

He then referred these patients to one of three pharmacies he owned, two of which were in Queens and one in Brooklyn. The pharmacies then billed Medicaid $2.5 million for medications that were either black market medications, generics or were never dispensed, the U.S attorney's office said.

Ahmad could not be reached for comment. His license was suspended March 8 and announced Monday.

The pharmacies were also affiliated with his brother, Muhammad Nawaz Ahmad, and his brother-in-law, Mohammad Tanveer, both of Floral Park. Both also pleaded guilty.

State Health Commissioner Dr. Richard Daines used his emergency powers to summarily suspend Ahmad's medical license because his continued practice "constitutes an imminent danger to the health of the people of New York," the health department said.


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