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Former Corona pharmacy owner pleads guilty to defrauding Medicaid of $1.5M

The owner of a former Corona pharmacy will be paying $3 million back to the state and spending six months in jail after participating in a kickback scheme.
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By Mark Hallum

The owner of a pharmacy formerly located in Corona will spend time behind bars after the entity associated with his business, Value Pharmacy Inc., pleaded guilty to defrauding Medicaid of $1.5 million.

New York State Attorney General Barbara Underwood and state Comptroller Thomas DiNapoli announced July 20 that Arkady Goldin, 40, will have to pay $3 million back to the state as a result of the guilty plea to committing health care fraud. He will serve six months in prison. A second defendant also pleaded in the case involving Value Pharmacy once located at 59-17 Junction Blvd.

“We have zero tolerance for those who defraud the state’s Medicaid program,” Underwood said. “We will continue to aggressively pursue all individuals who steal from Medicaid to enrich themselves at the expense of those who need the program for their fundamental health care.”

Goldin, as the owner of Value, was in a kickback agreement with a former employee of Nassau University Medical Center who also pleaded guilty at an earlier time, according to the DiNapoli.

The NUMC employee admitted to diverting cancer prescriptions from the medical center to Value in exchange for a cash referral fee, tickets to sporting events, an iPad and free meals, the state officials said in a joint press release.

“Arkady Goldin billed Medicaid millions for cancer medications he never dispensed,” DiNapoli said. “Thanks to our partnership with the attorney general’s office, Goldin has been convicted, his corrupt pharmacy closed, and he and his partners will pay the state back for the $3 million total in stolen Medicaid funds.”

Goldin also did not purchase sufficient amounts of medication from drug wholesalers if they were to dispense $3 million worth, which resulted in the state overpaying the pharmacy by $1.5 million in medicaid, according to Underwood.

Reach reporter Mark Hallum by e-mail at mhallum@cnglocal.com or by phone at (718) 260–4564.

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