Two New York men are accused of running a health system that defrauded Medicare and Medicaid of more than $100 million.
The U.S. Department of Justice (DOJ) says it is charging two Queens men with orchestrating a scam that stole $120 from Medicare and Medicaid by submitting fake $1 million claims.
Authorities say Inwoo Kim and Daniel Lee conspired to use Kim’s businesses — a pharmacy and two adult social day care centers — to pay illegal kickbacks to elderly Medicaid patients and Medicare beneficiaries.
The two men allegedly convinced seniors to drop off unnecessary prescriptions at Kim’s pharmacy and sign up for medically unnecessary services at his day care centers, then billed Medicare and Medicaid for the care supposedly provided.
Says Acting Medicaid Inspector Frank T. Walsh Jr.
“Medicaid fraud threatens the health and safety of beneficiaries, wastes taxpayer dollars, and drains critical resources from the health care delivery system.
This joint effort sends a clear message that the Empire State is committed to working closely with our law enforcement partners to protect the integrity of the Medicaid program, hold wrongdoers fully accountable, and preserve valuable health care resources.
Both Kim and Lee were charged with conspiracy to commit health care fraud.
If convicted, they each face up to 10 years in prison.
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