Nassau County authorities say they have uncovered two alleged ghost pharmacies operating out of storefronts in Floral Park and Freeport, accused of billing Medicaid, Medicare and private insurers for roughly $8 million in expensive medications that were never actually handed to a single patient. Investigators identified the businesses as RNJ Pharmacy, Inc. in Freeport and Jericho Express Rx, Inc. in Floral Park, and say the scheme pulled in about $5 million in payments before anyone caught on.
Tips From Neighbors Cracked The Case
According to ABC7 New York, community tips led investigators to the storefronts on Jericho Turnpike in Floral Park and Guy Lombardo Avenue in Freeport. Authorities allege the bogus corporations billed for costly drugs used to treat HIV and cancer, even though patients never received the medications. Nassau County Police Commissioner Patrick Ryder said a doctor's identity was stolen and patient identities were used to write the fraudulent prescriptions.
Police have charged both corporations criminally. Per Patch, RNJ Pharmacy, Inc. faces second-degree healthcare fraud, second-degree grand larceny and three counts of first-degree identity theft, while Jericho Express Rx, Inc. faces second-degree healthcare fraud, second-degree grand larceny and two counts of first-degree identity theft. New York's Penal Law lays out healthcare fraud offenses under Article 177, according to the New York State Senate's published statute, with degrees of the crime ranging from the fifth degree up to first degree.
Two Suspects, Millions In Cash, Then Gone
Authorities say the alleged scheme benefited two suspects who each walked away with millions of dollars before leaving the country. Ryder said the men used New York State driver's licenses to open their corporations, and that both had left before authorities could catch them. Police identified the suspects as Bakhodir Mirodimov of Uzbekistan and Abdilakim Berdikulov of Kurdistan, with Mirodimov accused of making off with $3 million in just 31 days while Berdikulov allegedly left with $5 million.
Investigators say they are not certain whether the two men are connected, and they have not concluded that the pair were the only people involved in this type of crime. Ryder said the pharmacies functioned as shelf accounts used to move money and overbill the public.
County Fears A Much Bigger Problem
Ryder said authorities believe there may be dozens of similar pharmacies operating the same way across the region. To respond, the Nassau County Police Department plans to form what it's calling the PHANTOM Task Force, aimed at combating pharmacy fraud, fraudulent pharmaceutical billing and identity theft, according to LongIsland.com. The outlet reports the investigation drew on help from the Nassau County District Attorney's Office along with federal and state agencies including HHS, the DEA, USPIS, the Department of Labor, ICE ERO and the New York State Comptroller's Division of Investigations.
Nassau County District Attorney Anne Donnelly said the alleged fraud increases costs and undermines the healthcare system, and she promised that authorities would connect the dots. Officials believe the problem extends well beyond these two storefronts, with regional taxpayers footing the bill either way. The investigation remains ongoing, and county leaders say enlisting federal assistance was necessary to chase down a scheme they suspect stretches far wider than what's already been charged.
