Uncovering the Anatomy of a Multimillion-Dollar COVID-19 Healthcare Fraud Scheme

In a shocking revelation, a Forest Hills pharmacy owner has been sentenced to nearly nine years in prison for his role in an million COVID-19 healthcare fraud and money laundering scheme. The case sheds light on the complex web of deceit and financial manipulation that has plagued the healthcare industry during the pandemic, with the perpetrators exploiting the system for their own personal gain.

Exposing the Elaborate Fraud Scheme

The Mastermind Brothers

Peter Khaim, a 44-year-old Forest Hills resident, was the central figure in this elaborate fraud scheme. He conspired with his brother, Arkadiy Khaimov, also a Forest Hills resident, to carry out the illicit activities. The brothers pleaded guilty in November 2022 to conspiracy to commit money laundering, admitting to using New York-area pharmacies to submit false and fraudulent Medicare claims and then laundering the criminal proceeds.

The Pharmacy Network

The brothers and their co-conspirators owned and controlled a network of over a dozen pharmacies, which they used as the foundation for their fraudulent activities. They exploited the COVID-19 pandemic by utilizing "emergency override" billing codes to submit bogus claims for expensive cancer medications that were never prescribed by physicians or dispensed to patients. These claims were made during periods when certain pharmacies were allegedly closed, further compounding the deception.

The Money Laundering Scheme

To conceal their illicit gains, the brothers funneled over million in criminal proceeds through a complex web of shell companies, including sham pharmacy wholesale companies designed to appear legitimate. They would transfer funds from the pharmacy bank accounts they controlled to these shell companies, which would then send the money to countries like China for distribution to individuals in Uzbekistan. Some of the funds were even returned to the defendants in the form of cash and certified cashier's checks.

The Lavish Lifestyle

The brothers used the proceeds of their scheme to live a lavish lifestyle, purchasing real estate and other luxury items. Their greed and disregard for the law have now caught up with them, with both brothers facing significant prison sentences and hefty financial penalties.

The Sentencing and Consequences

Peter Khaim was sentenced on June 24 by U.S. District Judge Ann Donnelly to 97 months (nearly 9 years) in prison and ordered to pay more than million in restitution and to forfeit more than .7 million. His brother, Arkadiy Khaimov, was previously sentenced in April to 6 years in federal prison for his role in the money laundering scheme.The sentencing of these individuals serves as a stark reminder of the consequences of healthcare fraud and the importance of maintaining the integrity of the healthcare system, especially during times of crisis. The COVID-19 pandemic has presented numerous challenges, but it has also exposed the vulnerabilities that can be exploited by those seeking to profit at the expense of the public's well-being.