Subscribe:Posts Comments

You Are Here: Home » Featured, LGBT News From Around The World » 4 Men Busted In $274M Medicaid Grift Preying On AIDS Patients And Reselling HIV Meds

A pharmacist and three others of  MOMS Pharmacy, a nationwide HIV drug marketing business have been arrested in Long Island, New York for reselling life saving HIV medications which had been paid for by Medicaid

A pharmacist at the high-volume national HIV drug marketing business, which has sites in Brooklyn, Manhattan, and on Long Island, is charged along with three outside conspirators of running a $274 million black market venture. By relabeling prescription drugs of uncertain quality and origin, the defendants allegedly preyed on patients with HIV and cost the Medicaid program $155 million in New York. MOMS, whose parent is listed as Allion Healthcare, a Melville, L.I.-based company, billed New York State Medicaid for at least $155 million for these unusable drugs, according to New York State Attorney General Eric Schneiderman. The AG’s office says Allion cooperated in the investigation.

Glenn Schabel (left) and Ira Gross (right)

Glenn Schabel (left) and Ira Gross (right)

Charged with taking bribes is Glenn Schabel of Melville, the supervising pharmacist and compliance officer for MOMS, a company that puts together daily-dose packages of HIV drugs. The company advertises itself as offering “The best HIV/AIDS pharmacy care available” and will deliver drugs directly to patients’ homes.

Another licensed pharmacist, Babylon, L.I.-based Ira Gross is said to have brokered the sale of these drugs, which may have been stolen, expired, or improperly reused after being obtained from the patients for whom they were prescribed.

A Florida resident, Stephen Manuel Costa, is said to have created four separate entities to masquerade as wholesale distributors to sell the illegally obtained drugs.

The fourth defendant, Texas-based Harry Abolafia, is charged with creating false invoices to legitimize the transactions with the bogus wholesalers.

So disgusting and despicable words fail me.

About the author

Will Kohler has written 5786 articles on this blog.

Will Kohler, owner and creator of Back2Stonewall.com is one of the country's leading experts on LGBT History, Media and Popular Culture. A longtime LGBT Equality activist, advocate and journalist Will created Back2Stonewall as an open venue to report and discuss LGBT issues, news and media in an open and honest way.

Leave a Reply

© 2012 Back2Stonewall · Subscribe:PostsComments · Designed by Theme Junkie · Powered by WordPress