KIRKLAND WOMAN PLEADS GUILTY TO HEALTH CARE FRAUD AND MONEY LAUNDERING CONSPIRACY
Co-owner of A-Z Pharmacy Billed Government for Medical Supplies and Drugs That Were Never Delivered
VALENTINA M. MILMAN, 39, of Kirkland, Washington pleaded guilty today in U.S. District Court in Seattle to Conspiracy to Commit Health Care Fraud and Conspiracy to Launder Money. MILMAN, and her husband ALEXANDER D. MILMAN, 46, owned A-Z Pharmacy with locations in Bellevue, Kent and Tacoma. The couple was indicted July 14, 2006. ALEXANDER D. MILMAN, 46, is scheduled for trial on the charges February 13, 2007. As part of its indictment, the government is seeking the forfeiture of three eastside properties and more than $1.5 million related to the fraudulent billing of Medicaid.
According to documents filed in the case, VALENTINA MILMAN assisted her husband in fraudulently billing the United States. ALEXANDER MILMAN recruited Medicaid patients to use the Pharmacy by offering gift certificates for Pharmacy goods. MILMAN then created false records, including physician prescriptions and delivery receipts and then billed the government’s Medicaid program for drugs and medical supplies that were never delivered. ALEXANDER MILMAN billed Medicaid for more than $1.3 million in incontinence supplies that were never delivered. Medicaid paid out more than $1.1 million on those claims. In addition MILMAN billed Medicaid and received payment for more than $417,000 in prescription drugs that were never delivered to Medicaid patients.
VALENTINA MILMAN assisted her husband when he used some of the fraudulently obtained money to make mortgage payments, for a down payment on a new home, and to buy expensive jewelry such as a Rolex watch.
With her guilty plea VALENTINA M. MILMAN agrees to pay $1,694,000 in restitution.
The case was investigated by U.S. Health and Human Services Office of Inspector General (HHS-OIG), Internal Revenue Service Criminal Investigations (IRS-CI), the Food and Drug Administration (FDA), the United States Postal Inspection Service (USPIS), the Washington State Board of Pharmacy, the Washington State Attorney General’s Medicaid Fraud Control Unit, the Health and Recovery Services Administration and the Bellevue Police Department.
The case is being prosecuted by Assistant United States Attorneys Jim Lord, Peter Winn and Richard Cohen.
For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney’s Office, at (206) 553-4110.