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)
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.
