KIRKLAND WOMAN SENTENCED TO 18 MONTHS FOR 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 was sentenced today in U.S. District Court in Seattle to 18 months for 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. VALENTINA M. MILMAN pleaded guilty in December 2006. Alexander D. Milman was sentenced in November 2007, to 63 months in prison, three years of supervised release and $1,694,241 in restitution to the Washington State Medicaid program. VALENTINA MILMAN is also responsible for the same amount in restitution.
According to documents filed in the case, VALENTINA MILMAN assisted her husband in fraudulently billing the Medicaid program. The MILMANs recruited Medicaid patients to use their Pharmacy by offering gift certificates for free goods. The MILMANs 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. The MILMANs billed Medicaid for more than $1.3 million in incontinence supplies that were never delivered, and 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.
VALENTINA MILMAN also assisted her husband when he used some of the fraudulently obtained money to make mortgage payments on real estate, and a down payment on a new home.
At the sentencing hearing today, Judge James L. Robart said, “This is a very serious matter because Medicaid fraud damages everyone – both the taxpayers as well as the recipients.”
In addition to Alexander Milman, two others have pleaded guilty and been sentenced in connection with the scheme. Oleg Ordinartsev, a former attorney, admitted in his plea agreement that he submitted false paperwork to Medicaid hiding Milman’s ownership role. Ordinartsev pleaded guilty to Conspiracy to Commit Health Care Fraud on July 6, 2007, and was sentenced last month to a year and a day in prison. Vladimir Mitkovetski, a former medical doctor, admitted in his plea agreement that he lied to government investigators, claiming he was the sole owner of Lakeshore Pharmacy and that he was simply purchasing equipment from Alexander Milman. Under Alexander Milman’s direction Mitkovetski created false paperwork to hide Milman’s ownership of Lakeshore Pharmacy. Mitkovetski pleaded guilty to making a false statement on June 19, 2007. Mitkovetski was sentenced last month to two years of probation.
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 Washington State Attorney General’s Medicaid Fraud Control Unit, the Food and Drug Administration (FDA), the United States Postal Inspection Service (USPIS), the Washington State Board of Pharmacy, the Health and Recovery Services Administration and the Bellevue Police Department.
The case was 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.