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For Immediate Release:  
For Further Information Contact:
March 28, 2006

Office of The Attorney General
- Zulima V. Farber, Attorney General
Division of Criminal Justice

- Gregory A. Paw, Director
Office of the Insurance Fraud Prosecutor
- Greta Gooden Brown, Insurance Fraud Prosecutor

 

Division of Criminal Justice
609-984-1936

 

Essex County Pharmacy and Employees Convicted
of $40,000 Medicaid Fraud

TRENTON - An Essex County pharmacy, and the pharmacy’s former manager and pharmacy assistant have been convicted of Medicaid fraud and related crimes after a five-week jury trial in Essex County Superior Court, Attorney General Zulima V. Farber announced.

According to Division of Criminal Justice Director Gregory A. Paw and Insurance Fraud Prosecutor Greta Gooden-Brown, Ojah Pharmacy, located at 42-44 Sussex Ave., East Orange, former pharmacy manager Verona Boodram, 28, Bloomfield, and former pharmacy technician Alpha Bangoura, 31, Orange, were convicted of Health Care Claims Fraud and Medicaid Fraud for bilking the Medicaid Program out of more than $40,000. The investigation continues.

The jury trial before Essex County Superior Court Judge Michael L. Ravin determined that the defendants submitted false prescription reimbursement claims to Medicaid and paid cash kickbacks to Medicaid beneficiaries to induce them to patronize the Ojah Pharmacy. Upon conviction, bail for both defendants was revoked and they were remanded to the Essex County Jail. When sentenced on May 5, the defendants each face more than ten years in state prison, fines exceeding $160,000, and deportation as illegal residents. The Ojah Pharmacy faces permanent exclusion from future participation in any federal or state health care program in addition to a $150,000 criminal fine, up to $40,000 in restitution, and a civil penalty of up to five times the amount of the theft ($40,000).

The Essex County jury found that from June 2002 through October 2004, Ojah Pharmacy, through Boodram and Bangoura, over billed Medicaid more than $40,000 for prescription medications that were not dispensed. The jury also convicted Bangoura and Boodram on charges that they enticed Medicaid patients, specifically HIV/AIDS patients, to negotiate prescriptions at the Ojah Pharmacy by offering ten dollars worth of store merchandise for each prescription. Additionally, Ojah Pharmacy paid Medicaid recipients an additional ten to one-hundred dollars in cash per prescription depending on the value of the medication.

Criminal Justice Director Paw noted that prescription fraud and the “buy-back” of prescriptions from Medicaid patients is becoming more common. The Office of Insurance Fraud Prosecutor has uncovered instances where pharmacies benefit from the scam by billing Medicaid the cost of expensive drugs without actually dispensing the medications - in essence, selling the same drugs more than once. The human cost is even more significant, in that patients sell prescriptions for cash and do not have medications to treat significant ailments.

Deputy Attorney General Riza Dagli, State Investigators Melissa Calkin and Jon Powers, Auditor Cleair Budhu, and were assigned to the investigation. Deputy Attorneys General Dagli and Mark Ondris represented the Division of Criminal Justice - Office of Insurance Fraud Prosecutor at the trial.

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