New York Doctor Admits Buying and Selling Oncology Medication for Profit

A New York doctor admitted using his medical license — and allowing others to use his medical license — to purchase prescription oncology medications under false pretenses for the purpose of selling them for profit. Jon Paul Dadaian, 53, of New York, a board-certified anesthesiologist and pain management specialist, pleaded guilty to an information charging him with unlawfully selling prescription cancer medication, which had been previously purchased using his medical license and under the representation that such medication was to be used to treat his patients.

While operating his medical practice in Elmwood, New Jersey, Dadaian befriended two individuals who owned and operated two businesses that were wholesale distributors of prescription drugs. At the request of these individuals, and in return for approximately $130,500 in payments, Dadaian used his medical license — and allowed others to use it — to purchase expensive prescription drugs, primarily, cold-chain biologic infusion medications that typically are used to treat cancers, macular degeneration, and autoimmune diseases. By recruiting and using Dadaian and his medical license to purchase the drugs, the two individuals were able to obtain prescription drugs from the pharmaceutical manufacturers’ authorized distributors that they would not otherwise have been permitted to purchase. They were then able to sell them at a profit through their two businesses. By using Dadaian and his medical license to purchase their prescription drugs, these two individuals also obtained discounted community physician pricing for the prescription drugs with respect to some of the drug purchases. The scheme ran from June 2012 through April 2018, during which tens of millions in prescription drugs were purchased in Dadaian’s name and using his medical license.

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