Pharmacy owner pleads guilty to $25M healthcare fraud scheme

A Great Neck, N.Y., man pleaded guilty to conspiring to defraud Medicare and Medicaid of more than $25 million.

Between January 2015 and December 2022, Dacheng Lu, formerly a part owner of New York City-based 888 Pharmacy and Huikang Pharmacy, and his co-conspirators allegedly referred Medicare beneficiaries and Medicaid recipients to medical practices that prescribed medically unnecessary prescriptions, which the pharmacies billed to Medicare and Medicaid, according to an Oct. 5 news release from the Justice Department. 

In exchange for writing the prescriptions, Mr. Lu and his co-conspirators allegedly gave the practices kickbacks and bribes in the form of rent and office staff.

Dr. Lu faces a maximum penalty of 10 years in prison.

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