TRENTON
- Attorney General Peter C. Harvey announced
that a Monmouth County pharmacist is the
third of four defendants to be sentenced
to state prison for participating in a
prescription fraud scheme which defrauded
the Medicaid Program out of more than
$290,000 in insurance payments for medications
that were never dispensed to patients.
The Medicaid Program, funded by the state
and federal governments, provides health
care services and prescription drugs to
persons who may not otherwise be able
to afford medical services.
Attorney General Harvey noted that in
2005, the Office of Insurance Fraud Prosecutor
continued as a national leader in insurance
fraud prosecutions. The Office of Insurance
Fraud Prosecutor, together with county
prosecutor insurance fraud units funded
by the OIFP, filed criminal insurance
fraud charges against 204 defendants,
with 169 defendants convicted on criminal
charges. Twenty-one defendants were sentenced
to a total of 97 years in jail in 2005.
Court ordered fines, penalties, and restitution
in criminal cases amounted to more than
$90 million in 2005. Additionally, in
2005, the OIFP imposed over 1,142 civil
sanctions seeking judgements totaling
over $4.7 million.
According to Vaughn L. McKoy, Director,
Division of Criminal Justice and Insurance
Fraud Prosecutor Greta Gooden Brown, Milton
Barasch, 75, Ivy Way, Aberdeen, Monmouth
County, was sentenced by Essex County
Superior Court Judge Michael Ravin to
four years in state prison. Additionally,
Baraschs’ pharmacist license was
suspended for one year and he was removed
from any participation in the Medicaid
Program for eight years.
Insurance Fraud Prosecutor Brown noted
that Barasch was charged with theft by
deception, Medicaid Fraud, and Health
Care Claims Fraud via a State Grand Jury
indictment returned on Nov. 8, 2002. Barasch
pleaded guilty to Health Care Claims Fraud
on May 19, 2003 before Essex County Superior
Court Judge Michael J. Nelson. In pleading
guilty, Barasch admitted that S Brothers
Pharmacy billed the Medicaid Program more
than $293,815 for medications that were
never dispensed to patients or for medications
that were dispensed using stolen or fraudulent
Medicaid identification numbers. In some
cases, phony bills were submitted to the
Medicaid Program for medications prescribed
to Medicaid recipients who had died years
before.
The indictment also charged several co-defendants
with Medicaid fraud and Health Care Claims
fraud for their participation in the Medicaid
fraud scam. The indictments charged Shahid
Khawaja, 47, Selkirk Street, New York
City, the owner of the now defunct S Brothers
Pharmacy formerly located at 687 Frelinghuysen
Ave., Newark, with fraudulently billing
the Medicaid Program $293,815. Khawaja
pleaded guilty to money laundering and
was sentenced on July 22 to five years
in state prison and ordered to pay $235,984
in restitution. Following the prosecution
by the Office of Insurance Fraud Prosecutor,
federal authorities charged Khawaja with
laundering more than $1.8 million in stolen
monies obtained through various fraud
schemes, including Medicaid Fraud.
Also charged were Dr. Axat Jani, 40, Fairlawn,
Bergen County and Azam Khan, 40, West
54th St., New York City. Jani pled guilty
before Judge Nelson on Jan. 7, 2003 and
was subsequently sentenced to four years
in state prison and ordered to pay a $10,000
criminal fine. On Aug. 9, 2002, Khan pleaded
guilty before Essex County Superior Court
Judge Joseph A. Falcone to a criminal
Accusation which charged Health Care Claims
Fraud. Khan is scheduled to be sentenced
on Jan. 27, 2006.
The Medicaid Fraud investigation was conducted
by the Division of Criminal Justice -
Office of the Insurance Fraud Prosecutor’s
Medicaid Fraud Section which investigates
and prosecutes civil and criminal Medicaid
fraud cases. State Investigator Jon Powers
and Deputy Attorney General Mark Ondris
coordinated the investigation. Additional
investigative assistance was provided
by the Division of Medical Assistance
and Health Services, Bureau of Integrity
and the United States Attorney’s
Office.
“Theft
from the Medicaid Program is theft of
tax dollars and theft from people who
can least afford medical care and prescription
drugs. When committed by licensed professionals,
these crimes become all the more disturbing,”
said Insurance Fraud Prosecutor Brown.
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