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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Pennsylvania

FOR IMMEDIATE RELEASE
Friday, June 2, 2017

Medical Office Manager Charged with Healthcare Fraud, and in Conspiracy with Thirteen Defendants to Distribute Oxycodone

An indictment was unsealed today, charging defendant Michael Milchin, 37, of Philadelphia, PA, with one count of conspiracy to commit health care fraud and five counts of health care fraud, announced Acting United States Attorney Louis D. Lappen. In addition, the indictment charges Milchin and the 13 defendants listed below with one count of conspiracy to distribute oxycodone:

 

 

NAME

 

ADDRESS

 

YEAR OF BIRTH

Augustine Lee

Philadelphia PA

1975

Nikita Latychev

Feasterville-Trevose PA

1988

Yaroslav Stadniychuk

Philadelphia PA

1989

Bryant Bishop

Philadelphia PA

1969

Ning Jian Du

Philadelphia PA

1984

Taras Trushchenko

Jamison PA

1978

Armen Khimoian

Warwick PA

1978

Linda Flamer

Philadelphia PA

1955

Igor Khavulya

Philadelphia PA

1981

Nik Palatnik

Feasterville-Trevose PA

1994

Vannarat Xayavongsithideth

Philadelphia PA

1982

Thearack Tham Kith

Philadelphia PA

1985

Sebastian Moeung

Philadelphia PA

1980

 

Each of the 13 defendants listed above is also charged with one count of distribution of oxycodone. In addition, Milchin is charged with fifteen counts of possession of oxycodone with the intent to distribute.

 

According to the indictment, Milchin became involved in two criminal agreements: first, from approximately June 2010 until approximately July 2012, a conspiracy to commit health care fraud with a chiropractor, John Vira, who is charged elsewhere; and second, from approximately May 2012 until approximately March 2015, a separate conspiracy with the other 13 charged defendants listed above, to distribute oxycodone.

 

Concerning the health care fraud conspiracy and substantive health care fraud charges, the indictment alleges that Milchin, who is not a medical professional, was the business manager at Vira’s office, Central Bucks Health Associates, located in Southampton PA. The indictment charges that Milchin and Vira worked together to defraud private insurance companies, Independence Blue Cross and Aetna, Inc., by billing those insurers more than $700,000 for chiropractic services that were never provided.

 

Concerning the drug distribution charges, the indictment alleges that Milchin conspired with the 13 defendants listed above to fill hundreds of fraudulent prescriptions for oxycodone at various pharmacies in and around Philadelphia. Milchin then sold the fraudulently obtained pills to others. The indictment charges that while the fraudulent prescriptions purported to be written by a physician with Central Bucks Health Associates, the physician in question had no affiliation with Central Bucks Health Associates and never authorized any of the prescriptions.

 

"The exploitation of the healthcare system through fraudulent claims for personal gain affects all of us who rely on that system,” said Acting United States Attorney Louis D. Lappen. “The trafficking of oxycodone completely devastates individuals, their families and all of our communities. We remain dedicated to prosecuting those who illegally exploit the healthcare system and fuel the opioid epidemic.”

 

If convicted, defendant Michael Milchin faces a maximum possible sentence of 5 years’ imprisonment for conspiracy to commit health care fraud and 10 years’ imprisonment for each count of health care fraud. In addition, each defendant faces a maximum possible sentence of 20 years’ imprisonment for conspiracy to distribute oxycodone and 20 years’ imprisonment for each count of distributing oxycodone or possessing oxycodone with the intent to distribute. Milchin also faces full restitution on the health care fraud charges.

 

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Mary Kay Costello.

 

An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Topic(s): 
Healthcare Fraud
Project Safe Neighborhoods
Updated June 2, 2017