On June 24, the Department of Justice (DOJ) announced the sentencing of two pharmacy owners in a case involving allegations of false claims submitted to Medicare and subsequent money laundering. Peter Khaim, 44, and his brother Arkadiy Khaimov, 41, both from Forest Hills, New York, operated 16 pharmacies in the New York area, along with their co-conspirators.

According to court documents, Khaim and Khaimov used COVID-19-related emergency billing codes to submit claims for expensive cancer medications. These claims were purportedly for medications that were not prescribed by doctors or dispensed to patients, including during periods when some pharmacies were closed.

To manage the proceeds from these claims, Khaim, Khaimov, and their associates reportedly employed several methods including funneling over $18 million through shell companies, including entities posing as legitimate pharmacy wholesalers. The funds were typically moved from pharmacy accounts to these “sham” wholesalers and then transferred to companies in China, with subsequent distribution to individuals in Uzbekistan. They would allegedly receive cash from a co-conspirator in return for these transactions, minus a commission. In other instances, proceeds were directed to the defendants, their relatives, or designees via certified cashier’s checks and cash. These funds were then purportedly used to purchase real estate and luxury items.

Khaim pleaded guilty on November 3, 2022, to one count of conspiracy to commit money laundering, and Khaimov did the same on November 16, 2022. Both were ordered to pay more than $18 million in restitution. Additionally, Khaim was ordered to forfeit over $2.7 million, and Khaimov over $9.6 million. Peter Khaim was sentenced to eight years and one month in prison, while Arkadiy Khaimov received a six-year prison sentence.

The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with criminal healthcare fraud and government investigations. If you need assistance with such a matter, please contact us today.