Five Pharmacists seized in Medicaid billing scam.
Kenneth C. Iwelumo
Below is excerpts from a news story in the thursday November 8, 1996 issue
of the Newark Star Ledger - New Jersey's largest newspaper.
A group of Newark, New Jersey Pharmacists and Drug Store owners were
arrested yesterday (November 7, 1996) on money laundering charges. More
arrests are expected. These arrests were brought about by the probe of
another Nigerian Newark Drug Store owner - Festus Nwankwo - who was arrested
earlier this year and pleaded guilty to bilking the US Government out of
millions of dollars in bogus payments.
The five persons have been indicted on charges of helping Festus Nwankwo to
launder some $900,000 in proceeds from the fraud. Arrested yesterday were
Raphael Nwankwo, 47, the owner of Park Avenue Pharmacy on Park Avenue in
Newark; Peter Emeka Obi, 40, a licensed pharmacist and owner of the
Dependable Pharmacy on Chancellor Avenue in Newark; Kenneth Enemuo, 34, a
licensed pharmacist and part owner of the University Pharmacy on South
Orange Avenue in Newark; his brother, Johnny Sunny Enemuo, 41, owner of
Sunjett Enterprises; and Chuck Bernard Oti, 33, owner of Chucknard Holding Inc.
As outlined in government documents, the scam centered on the operations of
Festus Nwankwo, who took over ownership of the Bloomfield Pharmacy in Newark
four years ago and turned it from a small struggling neighborhood business
into a multi-million dollar prescription mill.
His secret for success; blatant fraud.
According to authorities, if judged on the paperwork he submitted to
medicaid, Nwankwo's pharmacy on Bloomfield Avenue appeared to be doing a
bigger business than most national chain stores. It wasn't. What was
happening, prosecutors said, was that Nwankwo was buying up medicaid numbers
and blank prescription forms, filling out the forms himself and sending them
in to medicaid for payment.
In a previously sealed document, authorities revealed that officials
suspected a major fraud was being conducted by certain Newark area
pharmacies because their billings to state and federal medical aid programs
outstripped those of pharmacies in the state that were supplying medication
to nursing homes and other large purchasers.
The five arrested yesterday were charged in a conspiracy to funnel money
from the scam through various bank accounts under the guise of legitimate
payments. Following hearings in federal court in Newark. all five were
ordered released under $100,000 bonds posted by property.
An affidavit submitted by the IRS revealed that during the first 10 weeks of
this year, the Dependable Pharmacy billed federal and state programs for
reimbursement at a rate five times higher than what national chains were
filing. As an example, authorities said, Dependable billed some $400,000 in
reimbursement while a nearby Rite Aid store billed only $68,000.
Other Pharmacies suspected of being involved in the scheme are being
monitored by state and federal agencies. One document noted that after
Dependable was placed under monitoring, its billing dropped by 50 percent.
Festus Nwankwo has agreed to forfeit more than $4.8 million in cash and real
estate that was seized by the IRS. He has also agreed to surrender his
license and transfer ownership of his pharmacy to an unrelated third party.
Kenneth C. Iwelumo
---------------------------------------------------------------------------
" The pessimist sees the difficulty in every opportunity. The optimist, the
opportunity in every difficulty." (W. Churchill)
Nigerian Queen
On the topic of pharmacists, I was wondering...are there any pharmacists
out there willing to give this budding pharmacist some advice? I'm
applying to pharmacy schools for next fall and any help as to good schools
with the Pharm D program would be greatly appreciated. Who know's, some
day you might be ordering prescriptions from me...*grin*
And to the person who tried to correct that gentleman on being ibo, or
igbo...don't take it personally. I myself sometimes write it as ibo..which
is the english spelling...I think. Don't blow it out of porportion by
insinuating that he doesnt know his roots...or whatever the point was you
were trying to make. Just a thought. Have a blessed day my Nigerian
brothers and sisters.
-- CHIKA MADUEME --
*******************************************************************************
...Take my hand and journey with me into the roots of the past...
Mother Africa...a land where the chains of bondage are still heard,crying
for their uprooted freedom...a land of beauty and spirituality...where
the flowing river and beating drums sing the rhythm
of life..............SWEET AFRICA.
******************************************************************************
-- aka NIGERIAN QUEEN --
Emeka Ofobike
Netters:
I know one of the chaps mentioned in this case. The fellow "does naira
wonders" whenever he visits home, and that is very often. I'd be able to
retire in comfort if I had a penny for every time I've had people who have
seen him "perform" ask me "no be the same America all of una dey". I've
tried, often in vain, to explain that "America dey one kind one kind".
I sure hope my hommie is innocent of the charges being leveled against him.
I hope he has a good lawyer.
Emeka.
Emeka Ofobike
Reposting article removed by rogue canceller. See news.admin.net-abuse.announce
for further information.
Nigerian Queen
Reposting article removed by rogue canceller. See news.admin.net-abuse.announce
for further information.
On the topic of pharmacists, I was wondering...are there any pharmacists
Kenneth C. Iwelumo
Reposting article removed by rogue canceller. See news.admin.net-abuse.announce
for further information.
Below is excerpts from a news story in the thursday November 8, 1996 issue