KIRKLAND COUPLE INDICTED FOR HEALTH CARE FRAUD AND MONEY LAUNDERING CONSPIRACY
Owners of A-Z Pharmacy Billed Government for Medical Supplies and Drugs That Were Never Delivered
ALEXANDER D. MILMAN, 46, and his wife, VALENTINA M. MILMAN, 39, both of Kirkland, Washington were indicted this week by a federal grand jury in Seattle for Health Care Fraud, Conspiracy to Launder Money, fourteen counts of Money Laundering – Concealment, and one count of Structuring Financial Transactions. The couple owns A-Z Pharmacy with locations in Bellevue, Kent and Tacoma. 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 the indictment, the MILMANs recruited Medicaid patients to use their Pharmacy by offering gift certificates for Pharmacy goods. The MILMANs then created false records, including physician prescriptions and delivery receipts so that they could bill the government’s Medicaid program for drugs and medical supplies that were never delivered. The MILMANs 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 the MILMANs billed Medicaid and received payment for more than $417,000 in prescription drugs that were never delivered to Medicaid patients.
The indictment alleges that the MILMANs 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. The MILMANs concealed some of the payments for expensive jewelry, as payments for medical supplies. According to the indictment the MILMANs attempted to launder some of the proceeds of the crime by transferring tens of thousands of dollars to their daughter’s bank account and then withdrawing some of the money in cashiers checks. Some of the money was then used for mortgage payments on the couple’s various residences.
An indictment contains allegations that have not yet been proven at trial beyond a reasonable doubt.
If convicted, the MILMANs face up to 20 years in prison. The couple will make their initial court appearance on the charge in U.S. District Court in Seattle today at 2:30.
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 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.