Brooklyn Pharmacy Owner Indicted in Medicaid Fraud

NEW YORK (AP) -

A New York City pharmacy owner was indicted in an $800,000 Medicaid scheme after a sting operation where undercover officers posed as patients willing to take cash instead of medication, prosecutors said Thursday.

Aleksandr Ilyayev billed Medicaid for the expensive drugs that were not dispensed, or were only partly dispensed, District Attorney Charles Hynes said.

The investigation ran from January 2011 to November 2012. Based on the sting, Brooklyn prosecutors believe Ilyayev gave patients kickbacks in the form of cash or Metrocards for bringing him prescriptions. A videotaped conversation with an undercover shows Ilyayev offering the woman $25 per prescription and more if necessary, suggesting she sell the pills if she didn’t need them.