New York Authorities Charge 48 In Massive Medicaid Fraud

Source: Chris Boyette / CNN

New York – Federal prosecutors have charged 48 people in a massive fraud that allegedly bought HIV medications and other prescription drugs from Medicaid recipients and sold them to unsuspecting buyers.

The scheme cost tax payers $500 million, prosecutors said Tuesday.

Prosecutors said Medicaid beneficiaries in New York, including AIDS patients and others suffering from illnesses requiring expensive drugs, sold their prescriptions to some of the defendants for cash instead of using them for treatment.

Once Medicaid beneficiaries sold the drugs to other buyers, the latter marketed the pills to pharmacies and other wholesale prescription drug companies in New York, New Jersey, Pennsylvania, Florida, Texas, Massachusetts, Utah, Nevada, Louisiana and Alabama, according to authorities.

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