Pharmacy Owner Pleads Guilty to $25M Healthcare Fraud Scheme

A New York man pleaded guilty to conspiring to defraud Medicare and Medicaid of more than $25 million for medically unnecessary prescriptions that were induced by kickbacks and bribes. According to court documents, Dacheng Lu, aka Bruce Lu, 44, of Great Neck, was a part owner of 888 Pharmacy Inc. (888) and Huikang Pharmacy Inc. Between January 2015 and December 2022, Lu and his co-conspirators referred Medicare beneficiaries and Medicaid recipients to medical practices that prescribed medically unnecessary topical medications and pain patches, which 888 and Huikang billed to Medicare and Medicaid. In exchange for writing medically unnecessary prescriptions, Lu and his co-conspirators provided the medical practices kickbacks and bribes in the form of rent and office staff. Lu pleaded guilty to conspiracy to commit healthcare fraud. He is scheduled to be sentenced on Jan. 24, 2024, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the US Sentencing Guidelines and other statutory factors.

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