Predatory Pharmacies Targeted Low-Income HIV Patients: Former Owner of New York Pharmacies Sentenced for Ongoing $11 Million Medicaid Fraud Scheme
On November 20, 2024, New York Attorney General Letitia James that former pharmacy owner Aftab Hussain was sentenced to two to six years in prison for swindling over $11.5 million in a Medicaid fraud scheme that targeted low-income HIV patients who required life-saving medications.
Hussain and his co-conspirators paid illegal kickbacks to patients to entice them as repeat customers at over 20 Hussain-controlled pharmacies in New York City and Westchester County.
Patients鈥� prescriptions were then filled with unsafe medications illegally purchased from the black market or other pharmacy patients. Hussain and his associates billed Medicaid over $11.5 million for these illegally obtained drugs. From 2015 to 2019, Hussain and his co-conspirators paid, or directed others to pay, illegal kickbacks to Medicaid recipients diagnosed with HIV to return to their pharmacies to feed the scheme. Each kickback ranged from $25-$100.
At the time each medication was filled and delivered, Hussain and his associates would offer to buy back the HIV medication from the Medicaid recipients in exchange for cash, offering $100 to $200 per bottle. The wholesale prices for these medications generally cost between $2,000 and $3,000 per bottle. As a result of this scheme, many HIV patients went without their medication and were at risk of developing life-threatening complications.
鈥淭his predatory scheme stole millions of dollars while denying lifesaving treatment to New Yorkers in need,鈥� said聽Attorney General James. 鈥淎ftab Hussain exploited and endangered vulnerable New Yorkers with HIV, using them to steal taxpayer funds that provide health care to low-income patients, and now he will pay for his fraud. This case should serve as a warning to any crooked pharmacy operator. My office will continue to bring these cases to shut down illegal businesses that put New Yorkers at risk with fraud and dangerous medications.鈥�
Hussain and his associates also bought large amounts of HIV medications from the black market, drugs often obtained through other illegal kickbacks, and then the pharmacies distributed these prescriptions to unsuspecting recipients. They submitted claims for reimbursement to the Medicaid program as if they were disbursing medications that were obtained legally and safely.
State law prohibits all medical providers, including pharmacies, from paying, or offering to pay, kickbacks in return for referring Medicaid-covered medical services. State law mandates that pharmacies source their prescription medications from licensed wholesale distributors to ensure the integrity and safety of the drug supply.
Hussain is the last defendant sentenced in a long investigation that arrested and convicted five defendants. Hussain鈥檚 co-conspirators, including Josmary Cardenas (aka Yasmine Aftab Hussain), Victor Streety, Blanca Vanessa Alvarado, and Felix Lopez, all previously pleaded guilty to related crimes and have been sentenced.
Four corporations operating as pharmacies owned or controlled by Hussain or his co-conspirators were also charged: Harlem Super Pharmacy Inc., Health Smart Pharmacy Inc., Broadway RX Enterprises Inc., and E-Green Pharmacy Inc. d/b/a WinHealth Pharmacy. RX Enterprises Inc. and E-Green Pharmacy Inc. both pleaded guilty and were sentenced on October 16, 2024. The corporations must dissolve as part of the sentences.
Hussain was sentenced by Judge Brendan Lantry in New York County Supreme Court on his previously entered guilty plea to the charges of Grand Larceny in the First Degree, Grand Larceny in the Third Degree, Health Care Fraud in the First Degree, Health Care Fraud in the Second Degree, Scheme to Defraud in the First Degree, and Conspiracy in the Fourth Degree. He was also required to satisfy a settlement agreement in which he paid $7 million in restitution to the state.
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