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New York Pharmacy Owners Charged in $30 Million COVID-19 Health Care Fraud and Money Laundering Case
On December 21, 2020, the Department of Justice (DOJ) announced that two owners of over a dozen New York-area pharmacies were charged for their roles in a $30 million health care fraud and money laundering scheme.
The DOJ alleged that the pharmacy owners used emergency override billing codes, which went into effect due to the COVID-19 pandemic, in order to submit fraudulent claims for expensive cancer drugs that were never purchased by the pharmacies, prescribed by physicians, or dispensed to patients. The DOJ alleged that these claims were often placed when the pharmacies were not operational and by identifying doctors on prescriptions without their permission. The DOJ asserted that the pharmacy owners were ultimately paid over $30 million for these claims. The DOJ further alleged that the pharm