12 Defendants Named In NY Medicare Fraud Cases

November 2, 2011

On November 2, 2011, 12 individuals were charged in federal court in the Eastern District of New York for their roles in separate health care fraud schemes that resulted in the submission of more than $95 million in false claims to the Medicare program. Eleven defendants were arrested or surrendered, and the last defendant is expected to surrender soon.

NOTE: Charges in indictments are only accusations and allegations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

Money Laundering

The November 2nd indictment names as Defendants in theindictment Brooklyn, NY residents:

  1. Larisa Shelabadova, 34;
  2. Alexander Zaretser, 31;
  3. Anatoly Kraiter, 33;
  4. Vladimir Kornev, 52; and
  5. Yelena Galper, 38.

The five Defendants were charged for their roles in a scheme to launder the proceeds of Medicare fraud at three Brooklyn-area medical clinics:

  1. Bay Medical Care PC,
  2. SVS Wellcare Medical PLLC, and
  3. SZS Medical Care PLLC.

Allegedly, the named clinics paid kickbacks to Medicare beneficiaries and used the beneficiaries' names to bill Medicare for approximately $71 million in services that were medically unnecessary and never provided.

False Claims

A second indictment alleges that:

  1. Ho Yon Kim, 85, of Flushing, NY;
  2. Hoi Yat Kam, 57, of Flushing, NY;
  3. Peter Lu, 36, of New York City, NY;
  4. John Knox, 54, of Bronx, NY;
  5. Elaine Kim, 50, of Bayside, NY; and
  6. Gilbert Kim, 59, of Bayside, NY

participated in a fraud scheme at URI Medical Center and Sarang Medical PC (two Flushing, NY medical clinics).  Allegedly, these six Defendants submitted about $11.7 million in false claims to the Medicare program for physical therapy, electric stimulation treatments and other services. The indictment charges the Defendants  with failing to provide medically necessary services; and, in reality,billing Medicare for a variety of non-medical spa services, such as massages and facials. Moreover, the Defendants allegedly recruited Medicare beneficiaries to their clinics by offering lunches and dancing classes.

In a third indictment, Defendant Emma Poroger, 56, of Staten Island, NY (a doctor of osteopathy) was charged with participating in a scheme to defraud Medicare of approximately $13 million. Allegedly, Poroger billed Medicare for a variety of services she purportedly provided, including vitamin infusion therapy, sleep studies, nerve conduction tests and duplex scans; however, the Indictment charges such services were were medically unnecessary and never provided.