Nassau police: Ghost pharmacy owners got $5 million and left the US

Two Long Island pharmacies in Floral Park and Freeport billed Medicaid, Medicare and private insurers nearly $8 million for medications no one received. Police say the prescriptions were issued using stolen information belonging to doctors and patients.

On October 30, Nassau County police in New York announced the results of an investigation called Operation RX Hammer. Investigators say two Long Island pharmacies — Jericho Express Rx, Inc. on Jericho Turnpike in Floral Park and RNJ Pharmacy, Inc. on Guy Lombardo Avenue in Freeport — billed about $8 million for expensive prescription drugs. They received approximately $5 million in payments.

A significant portion of the bills went to the government Medicaid and Medicare programs, while the rest went to private insurers. Police say the prescriptions were issued without the knowledge of the doctors and patients, and the medications were never dispensed to anyone.

Sign outside, doors locked

“In reality, anyone trying to enter these establishments encounters locked doors, covered windows, empty shelves and inconsistent operating hours,” Nassau County District Attorney Anne Donnelly said.

Police Commissioner Patrick Ryder said local residents put investigators on the trail after noticing that the pharmacies, despite having signs outside, had never actually opened. He said the suspects first stole doctors’ personal information, then patients’ information, and used it to issue prescriptions for drugs used to treat HIV and cancer.

Фасады аптек Jericho Express Rx и RNJ Pharmacy (фото: полиция округа Нассау)

Charges filed only against companies

Police identified Bahodir Mirodimov as the owner of Jericho Express Rx and Abdilakim Berdikulov as the owner of RNJ Pharmacy. ABC7 reported, citing police, that Mirodimov is from Uzbekistan. The police department’s official press release does not provide the suspects’ names or citizenship. Ryder said both obtained New York driver’s licenses and used them to register their companies.

The owners themselves have not been charged; police say they have already left the country. The charges were filed against the companies for second-degree health care fraud, second-degree grand larceny and first-degree identity theft — three counts against RNJ Pharmacy and two against Jericho Express Rx. Investigators are determining whether the owners acted together and whether others were involved in the scheme.

“There are dozens of such pharmacies”

“We believe there are dozens of such pharmacies,” Ryder said. Police are creating a special PHANTOM task force to combat pharmacy fraud and identity theft. The investigation involves the county district attorney’s office, the U.S. Department of Health and Human Services, the Drug Enforcement Administration (DEA), the U.S. Postal Inspection Service, the Department of Labor, Immigration and Customs Enforcement (ICE), and the New York State comptroller.

“Fraud drives up costs for you and me and undermines the health care system, but I promise we will connect all the dots,” Donnelly said.

Many Russian-speaking New York residents use Medicaid and Medicare, so they should regularly check statements showing the services they received and avoid sharing their insurance number with strangers. Unfamiliar prescriptions listed on a statement can be reported to the New York State Office of the Medicaid Inspector General (OMIG) hotline at 1-877-873-7283 or by calling 1-800-MEDICARE.

Nassau police: Ghost pharmacy owners got $5 million and left the US