Pharmacy Owner Pleads Guilty in Health Care Fraud and Kickback Scheme

A New York man pleaded guilty today to conspiracy to commit health care fraud and unlawfully spending the proceeds of his $6.8 million fraud.

According to court documents, Robert John Sabet, 46, of Brooklyn, the owner of two New York City pharmacies, conspired to bill Medicare and Medicaid for expensive prescription drugs that were not needed by patients, were dispensed in connection with kickbacks, or, in some cases, not dispensed at all. As part of the conspiracy, Sabet and others paid kickbacks and bribes to customers to convince them to fill prescriptions at his pharmacies, and paid customers cash in exchange for the ability to bill Medicare and Medicaid for over-the-counter health care-related products on their behalf. Sabet used proceeds of the scheme to purchase luxury items, such as a 2020 Porsche Taycan worth over $250,000.

Sabet pleaded guilty to conspiracy to commit health care fraud and committing unlawful financial transactions. He is scheduled to be sentenced on July 29 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations, New York Regional Office; Special Agent in Charge Thomas Fattorusso of IRS-Criminal Investigation (IRS-CI), New York; and Acting Medicaid Inspector General Frank T. Walsh Jr. of the New York State Office of the Medicaid Inspector General (OMIG) made the announcement.

HHS-OIG, IRS-CI, and OMIG investigated the case.

Trial Attorney Miriam Glaser Dauermann of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brendan King for the Eastern District of New York are prosecuting the case. Photo by Coolcaesar at the English Wikipedia.