Queens Man Indicted for Defrauding Pharmaceutical Manufacturer

Earlier today, at the federal courthouse in Central Islip, an indictment was filed charging Arkadiy Khaimov with conspiring to commit mail and wire fraud by defrauding a pharmaceutical manufacturer of approximately $6.9 million by submitting fraudulent claims under the manufacturer’s Co-pay Coupon Program.  Khaimov will be arraigned at a later date.

Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS), Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, announced the indictment.

As alleged in the indictment, the pharmaceutical manufacturer, referred to in the indictment as “John Doe Company 1,” established the Co-pay Program to reimburse pharmacies for dispensing a prescription medication.  Between approximately February 2017 and July 2018, Khaimov and his co-conspirators submitted claims for approximately $6.9 million in reimbursements under the Co-pay Program for the medications that pharmacies operated by the defendant and his co-conspirators never actually dispensed.  In most cases, the pharmacies that the defendant and his co-conspirators operated sought reimbursements for highly unusual 18 or 21-day supplies of the medication, as compared to the 28-day supply that is commonly used in legitimate medical treatment.  This enabled the defendant and his co-conspirators to submit approximately two reimbursement claims in the same month.  In some cases Khaimov and his co-conspirators fraudulently used the credentials of a Nassau County-based physician to submit the false claims.

“Khaimov allegedly stole millions of dollars from a program that was established to assist patients in need of high-cost medication,” stated Acting United States Attorney DuCharme.  “Due to the hard work of our investigators and prosecutors, he will now be held accountable.” 

“Taking advantage of a program established to help pharmacies defray the cost of dispensing vital prescription medicine to those who need it most, Khaimov and his co-conspirators allegedly sought to profit from fraudulent claims totaling more than $6 million. It’s utterly discouraging to see people capitalize on any initiative designed to contribute to the greater good, but when the crime is healthcare related, and manufacturers stand to lose millions, nobody wins in the long run. Today’s charges signal an end to this particular instance of fraud, but rest assured, along with our partners, we will continue to seek out and pursue criminal charges wherever else this activity exists,” stated FBI Assistant Director-in-Charge Sweeney.

“Rebate fraud is not a new crime, it’s been investigated by Postal Inspectors for decades. What makes this case different is the size and scope of the scheme. The investigation of fraud crimes involving the U.S. Mail will always be a top priority for the Postal Inspection Service. Today’s arrest reflects a commitment by law enforcement to bring those to justice who participate in schemes to defraud” stated USPIS Inspector-in-Charge Bartlett.

“Fraud schemes that prey on funds intended for the use of those in need in our society, such as the one Mr. Khaimov has perpetrated here, are egregious and a serious concern for law enforcement and the tax-paying public in general”, stated IRS-CI Special Agent-in-Charge Larsen, “In a case like this, IRS-Criminal Investigation takes pride in working shoulder to shoulder with our law enforcement partners to see that the offenders are punished to the fullest extent of the law.” 

The charges announced today are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Khaimov faces a maximum sentence of 20 years’ imprisonment. 

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Bradley T. King, Madeline O’Connor and Department of Justice Trial Attorney Andrew Estes are in charge of the prosecution.

The Defendant:

ARKADIY KHAIMOV, also known as “Alex”
Age:  37
Forest Hills, Queens

E.D.N.Y. Docket No. 20-CR-267 (JS)