Date: February 27, 2020
A federal jury found a New York pharmacy owner guilty Wednesday of health care fraud and money laundering charges for his role in a scheme to defraud Medicare by billing for prescription medications that were not provided to patients.
After a four-day trial, Yuriy Barayev, of Queens, New York, was found guilty of one count of health care fraud and seven counts of money laundering. U.S. District Judge Edward R. Korman of the Eastern District of New York, who presided over the trial, will sentence Barayev later.
According to evidence presented at trial, from November 2013 to December 2015, Barayev engaged in a scheme to defraud Medicare by submitting claims for prescription medications that were not actually dispensed to patients. Barayev billed Medicare for hundreds of medications that were never dispensed through his pharmacy, Woodhaven Rx, the evidence showed. The evidence further showed that Barayev laundered the proceeds of his health care fraud scheme by transferring money to a shell company owned by his wife and then spending the money to benefit himself, his family and others close to him.
This case was investigated by IRS-CI and HHS-OIG. Trial Attorneys Sarah Wilson Rocha and Debra Jaroslawicz and Assistant Chief A. Brendan Stewart of the Criminal Division's Fraud Section are prosecuting the case.