Former NYC pharmacy owner gets prison for $11M Medicaid scam exploiting HIV patients

November 21, 2024 Robert Abruzzese, Courthouse Editor

Attorney General Letitia James, who announced the sentencing of former pharmacy owner Aftab Hussain for orchestrating an $11.5 million Medicaid fraud scheme that targeted vulnerable HIV patients. Photo: Mary Altaffer/AP

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Aftab Hussain, the former owner of more than 20 pharmacies across New York City and Westchester County, was sentenced to two to six years in prison for orchestrating an $11.5 million Medicaid fraud scheme that preyed on vulnerable HIV patients.

Hussain and his associates lured low-income HIV patients with cash kickbacks of $25 to $100, convincing them to fill their life-saving prescriptions at pharmacies he controlled. After dispensing the medications, they often bought them back for $100 to $200 per bottle, only to resell them to other patients. Many of the drugs were also sourced from black market suppliers, bypassing legitimate safety checks.

Hussain and his team billed Medicaid as though the medications had been legally and properly obtained, profiting massively at the expense of both taxpayers and patients.

“This predatory scheme stole millions of dollars while denying life-saving treatment to New Yorkers in need,” said Attorney General James. “Aftab Hussain exploited and endangered vulnerable New Yorkers with HIV, and now he will pay for his fraud.”

From 2015 to 2019, Hussain’s network of pharmacies shuffled operations across Manhattan, The Bronx and Westchester County to evade detection. Prosecutors uncovered extensive fraud, with Hussain and his co-conspirators submitting fake claims to Medicaid for the illegally obtained medications.

Several associates of Hussain have already been sentenced. His wife, Josmary Cardenas, received probation after pleading guilty to multiple charges, while other accomplices, including Victor Streety and Felix Lopez, were sentenced for their roles in the scheme. Four pharmacies tied to the operation have been ordered to dissolve.

Hussain’s sentencing in New York County Supreme Court includes a requirement to pay $7 million in restitution to the state. The charges against him included grand larceny, health care fraud, and conspiracy.