New Jersey pharmacy owner admits role in kickback scheme

The former owner of a Union City, N.J., pharmacy pleaded guilty for his role in a scheme to pay bribes to physicians and evade taxes on $33.9 million in income, the U.S. Justice Department said Feb. 25. 

Igor Fleyshmakher was co-owner of Prime Aid Pharmacy in Union City, N.J., where he allegedly conspired with seven other people to violate the federal anti-kickback statute and commit tax evasion. 

Prime Aid, with locations in both Union City, N.J., and New York City, operated as a specialty pharmacy and processed expensive drugs used to treat conditions such as hepatitis C, Crohn’s disease and rheumatoid arthritis. 

Starting in 2010, to boost the volume of prescriptions coming into the Prime Aid locations, Mr. Fleyshmakher paid bribes to physicians to use his pharmacy. The bribes included expensive meals, designer bags and payments by cash, check and wire transfers. 

Between 2012 and 2014 he diverted $33.9 million in Prime Aid income to a secret bank account he opened and controlled. He concealed the amount from his pharmacy's tax preparers and failed to report it to the IRS. 

His conduct resulted in a $5.8 million tax loss for the IRS, according to the Justice Department. 

Conspiracy and tax evasion charges each carry a maximum penalty of five years in prison and a fine of up to $250,000. Mr. Fleyshmakher is scheduled to be sentenced in June. 

Read the full news release here.

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