State prosecutors say a Brooklyn medical supplier turned a lifeline for sick kids into a personal luxury fund, allegedly pocketing more than $2.5 million from Medicaid for pediatric nutritional formula that was never delivered. According to investigators, the missing shipments meant some children never received the products their doctors ordered, even as the money allegedly helped pay for high-end cars and a Long Island mortgage. The arrest and a parallel civil action mark the latest push by New York officials to crack down on health care fraud.
As announced by the New York Attorney General, prosecutors say Nduka Lewis Ekpenyong, owner of Duke Medical, submitted more than 6,000 Medicaid claims between April 13, 2023, and July 15, 2025, for the premium product PediaSure with Peptides. Investigators say Duke Medical bought only about 10 percent of what it billed for, yet still received roughly $2,531,194.30 in improper Medicaid payments. According to prosecutors, Ekpenyong used the proceeds to buy a Bentley and a Range Rover and to pay the mortgage on a Hewlett home, while “families affected by his fraud were struggling to feed their children,” the office said.
How Prosecutors Say The Scheme Worked
The U.S. Department of Justice indictment filed in Kings County lays out allegations that Ekpenyong told staff at pediatric practices to tweak prescriptions so Medicaid would be billed for PediaSure with Peptides, an enteral formula for children with severe gastrointestinal disorders, instead of a lower-cost standard supplement. The filing also cites billing under HCPC code B4161 and claims Duke Medical submitted thousands of reimbursement requests for products that were never provided to patients. Duke Medical's registration lists the company at NPI Profile as being located at 101 Belmont Ave in Brooklyn, in the Brownsville area.
Assets Seized And Civil Claims
Alongside the criminal case, the Attorney General's office filed a civil asset forfeiture action seeking $7,593,582.90 and asking a court to seize what prosecutors say are ill-gotten gains. That includes luxury vehicles and a bid to block the sale of a Long Island home they argue was tied to the alleged fraud. The civil suit seeks to return money to the Medicaid program while the criminal case plays out, according to the Attorney General's press release.
Why This Matters For Families And Medicaid
Prosecutors and advocates say that when suppliers siphon off scarce medical products, children on Medicaid can be left with fewer options and longer waits, even as program costs climb. The U.S. Attorney’s Office in Brooklyn has this year pursued several large Medicaid fraud cases and secured multi-million dollar recoveries and guilty pleas, signaling a broader, ongoing enforcement push against health care fraud. This latest case fits into that pattern, targeting alleged schemes that divert money away from patient care.
What Happens Next
Ekpenyong and Duke Medical were indicted on charges including Grand Larceny in the First Degree, Health Care Fraud in the Second Degree, and Scheme to Defraud in the First Degree, court records show. The Medicaid Fraud Control Unit will prosecute the case in Kings County, and the defendants are expected to be arraigned in state court while the civil and criminal proceedings move forward. These are allegations, and the defendants are presumed innocent unless and until proven guilty in court.
