NYC pharmacy owners indicted in $3M Medicaid fraud scheme

The owner and manager of a New York City pharmacy were charged in a Medicaid fraud scheme that billed a managed care provider for drugs illegally obtained or never purchased. 

According to a July 11 news release from the New York attorney general, Juan Poveda owned Santiago Pharmacy and Javier Burbano managed the pharmacy. The attorney general's office alleged Mr. Poveda and Mr. Burbano paid kickbacks to Medicaid recipients to fill prescriptions, including for the expensive HIV treatment Biktarvy, at the pharmacy. 

According to the attorney general's office, Mr. Poveda and Mr. Burbano allegedly billed managed care organization Amida Care $2.9 million in claims for prescriptions illegally obtained or never provided to patients. 

Mr. Poveda and Mr. Burbano were charged with grand larceny, healthcare fraud and violating New York social services law for allegedly defrauding Medicaid. They could face up to 25 years in prison if convicted. 

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