New York officials recently charged a local pharmacy owner of Anti-Kickback Statute (AKS) violations and tax crimes. Prosecutors claim the man, along with others associated with the pharmacy, began illegally bribing doctors to use their pharmacy for services in 2010. In addition to cash payments, the government claimed the accused offered expensive meals and lavish gifts to entice doctors and doctors’ employees in New Jersey and New York to send prescriptions to their facility.
The government claims that as a result of these efforts, the accused earned $33.9 million in additional income.
Government digs deeper, adds tax crimes to charges
The government further claims that the accused failed to report the income on his taxes. As a result, in addition to health care charges he also faces criminal charges for tax evasion. The prosecution also claims the accused acted to hide these assets, transferring the funds to a secret bank account. The Internal Revenue Service (IRS) claims the move led to a net loss of $5.8 million in tax revenue for the agency.
Progression of the investigation leads to plea deal
When presented with the evidence, the accused chose to accept a plea deal. as part of the plea deal, the accused admitted to earning between $3.5 million and $9.5 million from violations of the AKS. He faces up to ten years imprisonment ant $250,000 in fines. He will face sentencing for these crimes in June of 2020.
The government is continuing to build a case against others connected to this pharmacy. We will provide updates as they become available.
