A New York City man will be spending the next thirteen years in prison on a Federal conviction for his alleged involvement in a health care kickback scheme involving millions of dollars.
The 45-year-old man was allegedly part of a network of several medical clinics in the boroughs of Queens and Brooklyn that employed medical professionals enrolled in Medicare and Medicaid. Per prosecutors, the medical professionals paid the defendant kickbacks to refer Medicare and Medicaid beneficiaries to them, which they allegedly did for over a decade.
In order to camouflage the scheme, prosecutors say the network then laundered the money it received from Medicare and Medicaid through businesses controlled by the defendant, including several check-cashing operations. Additionally, the defendant did not pay income taxes on the proceeds he received as kickbacks over that time either.
After a two-week trial, the defendant was found guilty by a Federal jury of one count of conspiracy to commit money laundering, two counts of money laundering, one count of conspiracy to pay and receive health care kickbacks, and one count of conspiracy to defraud the United States by obstructing the IRS. He was sentenced last week in that same courtroom to 156 months in Federal prison without parole. The defendant was also sentenced to pay $39.4 million in restitution and to forfeit $2,614,233.
The defendant was one of over 25 individuals who have pled guilty or been convicted of Federal crimes in the scheme to date.