Breaking News Crime

Pharmacies in Freeport and Floral Park charged in healthcare fraud scheme

Posted

Two pharmacies, one in Freeport and the other in Floral Park, are facing charges of healthcare fraud in relation to an investigation coordinated by the Nassau County Police Department. The businesses allegedly obtained millions illegally through the scheme. 

THe Nassau County Police's Asset Forfeiture Unit reported that RNJ Pharmacy Inc., located on Guy Lombardo Avenue in Freeport, and Jericho Express Rx Inc., on  the Jericho Turnpike in Floral Park, improperly submitted claims for high-cost prescription medications. The pharmacies did this without the consent of knowledge of prescribing physicians or patients, and never dispensed the medications to the patients they were supposedly for.

A large portion of the billing involved Medicaid, Medicare and private insurance prociders. The police allege that the businesses made about $8 million in pharmaceutical billing and $5 million in payments received. 

Both pharmacies have been charged with healthcare fraud in the second degree and grand larceny in the second degree. RNJ Pharmacy faces three additional counts of identity theft in the first degree while Jericho Express Rx only faces two such counts. 

Specific individuals or business owners have not been named by the department as suspects.  If convicted, accused individuals could face up to 20 years each for healthcare fraud and grand larceny, while facing an additional seven years for each count of identity theft. 

The investigations were conducted through the unit's "Operation RX Hammer" that investigates alleged healthcare fraud across nassau County. Assisting detectives were the Nassau County District Attorney's Office, the U.S. Department of Health and Human Services, the Drug Enforcement Administration's Diversion Control Division, the U.S. Postal Inspection Service, the U.S. Department of Labor, Immigration Customs Enforcement's  Enforcement and Removal Operations and the New York State Comptroller's Division of Investigations. 

Nassau County police said in a statement that it will be forming the PHANTOM Task Force to combat similar schemes involving pharmacy fraud, fraudulent pharmaceutical billing, and identity theft.