New York Attorney General Letitia James has announced the sentencing of Aftab Hussain, a former pharmacy owner, for his involvement in a Medicaid fraud scheme that targeted low-income HIV patients. Hussain received a prison sentence ranging from two to six years after stealing over $11.5 million through fraudulent activities involving more than 20 pharmacies across New York City and Westchester County.
The scheme involved paying illegal kickbacks to patients, ensuring they used Hussain's pharmacies for their prescriptions. These prescriptions were filled with medications obtained illegally from the black market or other patients. The total billed to Medicaid amounted to over $11.5 million.
Attorney General James emphasized the severity of the crime: “This predatory scheme stole millions of dollars while denying lifesaving treatment to New Yorkers in need,” she stated. She further warned against such fraudulent practices: “This case should serve as a warning to any crooked pharmacy operator.”
Hussain's operation included paying Medicaid recipients diagnosed with HIV between $25 and $100 as inducements for filling their prescriptions at his pharmacies. He also offered cash payments ranging from $100 to $200 per bottle of medication upon delivery, despite wholesale prices being significantly higher.
These actions led many vulnerable patients to forego their necessary medications, risking severe health complications due to untreated HIV. Additionally, Hussain acquired large quantities of medications through black market channels and dispensed them without proper safety measures.
State law prohibits medical providers from offering kickbacks for services paid by Medicaid and mandates that all prescription inventory be sourced from licensed distributors.
Several co-conspirators have already been sentenced for related crimes, including Josmary Cardenas (aka Yasmine Aftab Hussain), Victor Streety, Blanca Vanessa Alvarado, and Felix Lopez. Four corporations associated with these activities were also charged and required to dissolve as part of their sentences.
Hussain was sentenced by Judge Brendan Lantry in New York County Supreme Court following his guilty plea on multiple charges including Grand Larceny and Health Care Fraud. He is also required to pay $7 million in restitution.
The investigation was conducted by the Office of the Attorney General’s Medicaid Fraud Control Unit (MFCU) with assistance from various state departments and organizations within the healthcare sector.