Manhattan Man Sentenced To 10 Years In Prison For $26 Million Scheme To Defraud Medicare And Medicaid
Defendant Established Six Clinics in Brooklyn that Paid Elderly People to Pose as Patients, and Billed Medicare and Medicaid For Unnecessary and Non-Existent Medical Care and Equipment
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ALEKSANDR BURMAN, a/k/a “Alexander Burman,” was sentenced today by U.S. District Judge Paul G. Gardephe to 10 years in prison. BURMAN organized and managed a large health care fraud scheme through six medical clinics in Brooklyn, through which BURMAN and his co-conspirators defrauded the Medicare and New York State Medicaid (“Medicaid”) programs of more than $26 million. As part of the scheme, BURMAN and his co-conspirators paid cash kickbacks to elderly and financially disadvantaged patients insured by Medicare and/or Medicaid, to induce those patients to receive medically unnecessary medical services and equipment, and then to bill Medicare and Medicaid for those unnecessary services or for additional non-existent services and equipment. BURMAN pled guilty on March 18, 2016, before U.S. Magistrate Judge Henry B. Pitman to conspiring to commit wire fraud and health care fraud, health care fraud, and committing an offense while on pretrial release in an earlier criminal case.
Acting U.S. Attorney Joon H. Kim said: “Aleksandr Burman victimized both patients and taxpayers. He established and operated six fraudulent medical clinics, bilking Medicare and Medicaid out of more than $26 million. Medicare and Medicaid were established to assist the elderly and disadvantaged, not to enrich corrupt fraudsters.”
According to the Information to which BURMAN pled guilty, other filings in Manhattan federal court, and statements made in connection with BURMAN’s sentencing:
Nine former employees of the BURMAN clinics, as well an additional associate, are facing charges in a separate case for related conduct. Those defendants are awaiting trial before United States District Judge Lorna G. Schofield in United States v. Vaid.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney David Raymond Lewis is in charge of the prosecution.