Two Shuttered Harlem Pharmacies Implicated In Medicaid Fraud Scheme

HARLEM, NY – Aftab Hussain, the former owner of over 20 New York City and Westchester County pharmacies, has been sentenced to two to six years in prison for orchestrating an $11.5 million Medicaid fraud scheme that exploited low-income HIV patients, according to New York State Attorney General Letitia James’ office.

Hussain was also ordered to pay $7 million in restitution, per a press release.

The Scheme

Between 2015 and 2019, Hussain and his associates paid illegal kickbacks to Medicaid recipients with HIV, offering between $25 and $100 to persuade them to fill their prescriptions at Hussain-controlled pharmacies. The wholesale value of these drugs is typically $2,000 and $3,000 per bottle.

These kickbacks often included offers to buy back medications for cash at delivery – which meant patients weren't taking their medication – depriving them of essential treatment and putting them at risk of life-threatening complications. The pharmacies also dispensed unsafe medications sourced illicitly from the black market or other patients, while billing Medicaid as if the drugs had been legally and safely obtained.

Hussain's sentencing concludes a broader investigation by the Attorney General’s Medicaid Fraud Control Unit (MFCU) that resulted in the arrests and convictions of several co-conspirators.

These include Josmary Cardenas, Victor Streety, Blanca Vanessa Alvarado, and Felix Lopez, who have received various sentences ranging from probation to jail time.

The investigation revealed that Hussain and his associates partook in a range of illegal activities, including purchasing large quantities of HIV medications through black market channels and submitting fraudulent claims for reimbursement to Medicaid.

“This predatory scheme stole millions of dollars while denying lifesaving treatment to New Yorkers in need,” said James, in a statement. “Aftab Hussain exploited and endangered vulnerable New Yorkers with HIV, using them to steal taxpayer funds that provide health care to low-income patients, and now he will pay for his fraud. This case should serve as a warning to any crooked pharmacy operator. My office will continue to bring these cases to shut down illegal businesses that put New Yorkers at risk with fraud and dangerous medications.”

Harlem Pharmacies

Hussain operated more than 20 pharmacies across Manhattan, the Bronx, and Westchester County – including two in Harlem – and frequently relocated his businesses to evade detection.

The pharmacies involved include Harlem Super Pharmacy Inc., Health Smart Pharmacy Inc., Broadway RX Enterprises Inc., and E-Green Pharmacy Inc., which collectively pleaded guilty and have been ordered to dissolve.

State laws prohibit medical providers from paying kickbacks for Medicaid referrals and require pharmacies to source medications only from licensed distributors to ensure patient safety.

James urged New Yorkers to report suspected Medicaid fraud through the state’s toll-free hotline at 1-(800) 771-7755 or online. Those who believe they may have been affected by this scheme or a similar fraud should contact James’ office at the aforementioned telephone number.