Four Hudson County Pharmacies to Pay $4.3 Million in False Claims Settlement

Federal investigation finds pharmacies billed Medicare and Medicaid for prescriptions not actually dispensed

NEWARK, N.J. — Four pharmacies operating in West New York, Bayonne, Union City, and Jersey City have agreed to pay a combined $4.325 million to resolve allegations that they improperly billed federal health care programs for medications that were never dispensed, according to an announcement by Senior Counsel Philip Lamparello on behalf of the U.S. Attorney’s Office.

The settlement addresses claims brought under the False Claims Act, a federal statute used to pursue cases of fraud against government programs. According to the government, inventory records indicated that the pharmacies had not purchased sufficient medication stock from wholesalers to account for the volume of prescriptions for which they sought reimbursement from Medicare Part D and New Jersey Medicaid.

The four pharmacies involved in the settlement are:

• Pan American Inc. — agreed to pay $3.1 million to resolve allegations that, between January 2015 and January 2022, it submitted claims for medications that were never dispensed to beneficiaries.

• St. Mina and St. Moses Pharmacy, operating as Well Care Pharmacy — agreed to pay $490,000 to settle similar allegations for the period of May 2016 through March 2022.

• Farmacia Latina Corp. — agreed to pay $375,000 to resolve claims for the period between January 2015 and January 2022.

• Perfect Care Pharmacy LLC — agreed to pay $360,000 covering the same timeframe as above.

All four pharmacies were accused of billing federal health care programs for unprovided medications, though the settlements do not include any admission of wrongdoing, and no determination of liability has been made.

Assistant U.S. Attorneys Kruti Dharia and Robert Toll of the Health Care Fraud & Opioids Enforcement Unit handled the case for the government. The resolution reflects the federal government's continued focus on identifying and prosecuting health care fraud, particularly schemes that exploit publicly funded programs.

The Department of Health and Human Services encourages the public to report suspected health care fraud, waste, or abuse through its hotline at 1-800-HHS-TIPS (800-447-8477).

The settlements stem from civil enforcement actions and do not preclude potential future administrative or criminal proceedings, if warranted.