$10M Health Care Fraud Scheme Ties Back To Morris County: Feds

MORRIS COUNTY, NJ — A Morris County woman was arrested Friday on charges related to conspiring to commit health care fraud, U.S. Attorney Philip Sellinger announced today.

Aysha Khan, 33, of Kinnelon, was charged with one count of conspiracy to commit health care fraud and four counts of health care fraud, according to Sellinger.

Officials said that Khan allegedly controlled and operated a number of "specialty pharmacies" in New Jersey, New York, Texas and Florida.

Prosecutors claimed Khan's pharmacies processed expensive medications used to treat diseases such as Crohn's disease, hepatitis C and rheumatoid arthritis.

According to the indictment, Khan allegedly directed pharmacies to bill health insurance providers for medications that were never given to patients.

While the pharmacies generally provided medications for the initial prescriptions they received, prosecutors claimed that they would bill for refills without actually dispensing them.

According to Sellinger, between January 2015 and July 2022, Khan Pharmacies received more than $10 million in Medicare reimbursement payments for prescriptions they never ordered or had in stock.

Khan was arrested and is scheduled to appear in federal court in Newark on Friday. If convicted, she faces up to ten years in prison on each count and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.