The owner of a Syosset pharmacy faces federal charges in a $101 million Medicare and Medicaid fraud scheme as part of a nationwide crackdown, prosecutors said Wednesday.
Jian Ai Chen, also known as Maggie, 48, a medical assistant and owner of two pharmacies in Brooklyn, was arrested and arraigned June 14 before U.S. Chief Judge Lois Bloom and released on bail $500,000 bond pending trial.
Chen was charged with one count of conspiracy to defraud in connection with a scheme to pay more than $5 million in kickbacks to Medicare and Medicaid beneficiaries in exchange for bringing their prescriptions to AC Pharmacy Corp. and A Star Pharmacy Inc., Brooklyn pharmacies she owned. , prosecutors said.
Chen allegedly agreed with others to submit false and fraudulent claims to Medicare and Medicaid plans to dispense prescription drugs that were induced by the payment of kickbacks and were not actually dispensed, authorities said. Chen’s pharmacies received approximately $101 million as a result of the scheme, prosecutors said.
Chen’s attorney could not immediately be reached for comment.
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Department of Justice, represent our intensified efforts to combat fraud and prosecute those who benefit from it,” said Attorney General Merrick Garland in a statement. “The Department of Justice will find and bring to justice criminals who seek to defraud Americans and steal taxpayer-funded programs.”
Chen was among 78 defendants, including Carlo Elomina Garcia, 51, of Astoria, Queens, targeted for allegedly participating in more than $2.5 billion in health care fraud and opioid abuse schemes that included, in some cases, the purchase of yachts and luxury vehicles, federal. prosecutors said.
Garcia, a licensed occupational therapist and owner of Carlo E. Garcia Occupational Therapy in Queens, was arrested and arraigned Monday and released on $25,000 bond pending trial.
An attorney for Garcia could not be reached for comment.
Prosecutors alleged that from May 2017 to June 2021, Garcia through his company billed Medicare and Medicaid more than $3.9 million in occupational therapy services and was paid more than ‘1.6 million dollars. Prosecutors said many of the services billed were ineligible for reimbursement, were not provided as billed, or were not provided at all.
US Attorney for the Eastern District Breon Peace speaks in Brooklyn in 2022 Credit: Craig Ruttle
“As alleged, the defendants abused the trust placed in them by Medicare and Medicaid by falsely billing these essential programs for their own enrichment,” said U.S. District Attorney Breon oriental “This enforcement action demonstrates our continued commitment to vigorously pursue health. care providers who steal from taxpayer-funded programs meant to help those in need.”
Nicole Fuller is Newsday’s senior criminal justice reporter. He started working at Newsday in 2012 and previously covered local government.
