Peter Khaim — Indictment, 1:20-cr-00580(AMD)(RML)
Summary
A sealed indictment, Case 1:20-cr-00580-AMD, Document 1, filed 12/18/20, in the U.S. District Court for the Eastern District of New York, against Peter Khaim and his younger brother Arkadiy Khaimov, both described as residents of Forest Hills, New York. Its background covers the New York pharmacy ownership application, Form PH 200, Medicare Part D and Prescription Drug Plans, and states that the Average Wholesale Price of Targretin Gel 1% exceeded approximately $34,000 per 60 gram tube. The indictment alleges that from about August 2018 through August 2020 the defendants, with others, obtained and concealed ownership and control of thirteen New York pharmacies. A Money Launderer 1 is also described.
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Full text
Case 1:20-cr-00580-AMD *SEALED* Document 1 Filed 12/18/20 Page 1 of 23 PageID #: 1
4:57 pm, Dec 18, 2020
1:20-cr-00580(AMD)(RML)
Case 1:20-cr-00580-AMD *SEALED* Document 1 Filed 12/18/20 Page 2 of 23 PageID #: 2
Transfer of Ownership of Pharmacy (the ''New York Pharmacy Application"), also known as
"Form PH 200," which fonnwas prescribed by the Department of Education.
3. The New York Pharmacy Application required each appHcant to provide
the full name and cet1ain requ.ested information for each corporate officer, partner or member, as
well as the full name and certain requested information for each owner or principal stockholder
(owning 10 percent or more ofcorporate stock) of the pharmacy. The registrant (an individual
owner, partner, corporate officer, member or other authorized person) was required to attest that
he or she "affirm[ed] under penalty of pe1jury that the answers and statements that he/she []
made in the[] application.[were] true and[] n~ade and given with the intent of having the
[Department of Education] and the New.York State Board of Phannacy rely on the tmth thereof'
in determining whether to grant the application.
4. Article 137 provided, inter alia, the following requirements for
pharmacies:
(a) All prescription drugs were required to be dispensed by a licensed
pharmacist;
(b) Only a licensed person was permitted to practice pharmacy or use
the title "pharmacist" (with a limited number of exceptions not applicable here); and
(c) If the owner of a pharmacy was not a licensed pharmacist and
thereby not capable of personally supervising the pharmacy, the licensed pharmacist who had
personal supervision of the pharmacy (the "Supervising Phan'nacist") was required to be named
on the pharmacy registration. If such licensed pharmacist no longer had personal supervision of
the pharmacy, the owner was required to notify the Depatiment of Education of that fact and
provide information for a new Supervising Pharmacist.
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5. The Rules of Professionalism provided that, among other responsibilities,
a Supervising Pharmacist of a New York State-registered pharmacy was required to have:
(a) ensured that either the Supervising Pharmacist or another licensed
pharmacist was physically on the premises of the pharmacy at all times that the pharmacy was.
open for business;
(b) refrained from delegating professional responsibilities to a person
whom the Supervising Pharmacist or otherwise licensed pharmacjst knew was not qualified to
perform them; and
(c) notified the New York State Board of Pharmacy within seven days
of any change in the identity of the Supervising Pharmacist.
B. The Health Care Benefit Programs
6. The Medicai·e program ("Medicare") was a federal health care program
providing benefits to persons who were at least 65 years old or disabled. Medicare was
administered by the Centers for Medicare and Medicaid Services ("CMS"), a federal agency
under the United States Department of Health and Human Services ("HHS"). Individuals who
received benefits under Medicare were referred to as Medicare "beneficiaries."
7. Medicare was divided into multiple pa11s. Medicare Pai1 D provided
prescription drug coverage to persons who were eligible for Medicare.
8. Medicare beneficiaries obtained Part D benefits in two ways: (a) by
joining a prescription drug plan, which covered only prescription drugs, or (b) by joining a
Medicare Advantage Plan, which covered both prescription drugs and medical services
(collectively, "Part D Plans"). Pait D Plans were operated by private companies, often 1:eferred
to as drug plan "sponsors," that were approved by Medicare ("Medicare Drug Plan Sponsors").
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9. Medicare and Medicare Drug Plan Sponsors were each a "health care
benefit program," as defined by Title 18, United States Code, Section 24(b).
10. CMS assigned pJ1armacies a national provider identification number
(''NPI"). A pharmacy dispensing medications to a beneficiary used its assigned NPI when
submitting a claim for reimbursement under Medicare Part D. ·A pharmacy was permitted to
submit ~laims for reimbursement under Part D only for medications that were medically
necessary and actually dispensed. A pharmacy was required to maintain records verifying that it
dispensed the medications.
11. The Medicaid Program ("Medicaid") in New York State was a federally
and state funded health care program providing benefits to individuals anti families who met
specified financial and other eligibility requirements, and to ce1tain other individuals who lacked
adequate resources to pay for medical care. CMS was responsible for overseeing the Medicaid
program in participating states, including New York. Individuals who received benefits under
Medicaid, like those who received benefits under Medicare, were referred to as "beneficiaries."
12. In New York State, Medicaid provided prescription drug coverage to its
beneficiaries. Medicaid beneficiaries could obtain their prescription drug benefits from
pharmacies either through "fee-for-service" plans or tlu·.ough "Medicaid Managed Care Plans,"
which were plans administered by private insurance companies that were paid by Medicaid.
13. Medicaid .and Medicaid Managed Care Plans were each a "health care
benefit program," as defined by Title 18, United States Code, Section 24(b).
· 14. A pharmacy could participate in the Medicare Part.D program and
Medicaid (collectively, the "Prescription Drug Plans") by entering into an agreement: (a) directly
with a Prescription Drug Plan; (b) with one or more Pharmacy Benefit Managers ("PBMs"); or
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(c) with a Pharmacy Services Administration Organization ("PSAO"). A PBM acted on behalf
of one or more Prescription brug Plans. Through a Prescription Drug ~Ian's PBM, a pharmacy
could join a Prescription Drug Plan's network. A PSAO contracted with PBMs on behalf of the
pharmacy.
15. Typically, a· beneficiary enrolled in a Prescription Drug Plan obtained
prescription medications from a pharmacy authorized by the beneficiary's Prescription Drug
Plan. After filling a beneficiary's prescription, the authorized pharmacy submitted the claim
either directly to a Prescription Drug Plan or to a PBM that represented the Prescription Drug
Plan. The pharmacy provided, among other things, the beneficiary's identification number, the
identification ~mmber of the medical professioiial who ordered the pres9ription and the
pharmacy's identification number, such as the NPI, with the claim. The Prescription Drug Plan
or the PBM determined whether the pharmacy was entitled to payment for each claim. Then,
the Prescription Drug Plan or PBM, either directly or indirectly, reimbursed the pharmacy for the
claim.
C. Targretin
16. Cutaneious T-Cell Lymphoma was a rare disease, accounting for under
approximately five percent of all cases of non-Hodgkin's Lymphoma, that primarily affected the
skin. Targretin was a drug used to treat skin problems arising from Cutaneious T-Cell
Lymphoma.
17. In or around June 2000, Targretin Gel 1% was approved as a new dosage
form for Targretin by the U.S. Food and Drug Administration as a priority drug for the topical
treatment ofcutanequs lesions in patients with Cutaneious T-Cell Lymphoma (stage IA and IB)
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who had refractory or persistent disease after other therapies or who had not tolerated either
therapies.
18. The use of Targretin Gel 1% was medically necessary only if other skin-
directed therapies had failed or were contra-indicated for a particular patient.
19. Targretin Gel 1% was not a legitimate treatment for the disease caused by
the coronavirus that was discovered in or about December 2019. ("COVID-19") or any side
effects of COVID-19.
20. The Average Wholesale Price for Targretin Gel 1% was in excess of
approximately $34,000 for each 60 gram tube.
21. Due to the relative expense of Targretin Gel 1%, the Prescription Drug
Plans imposed prior aut~orization requirements before permitting pharmacies to be reimbursed
for dispensing Targretin Gel 1%. Prior authorization was a requirement that a heaith care
provider obtain advance approval from the Prescription Drug Plans to dispense a prescription
drug before submitting a claim for reimbursement. Pursuant to the requirement, the pharmacy
would be paid for dispensing Targretin Gel 1% only if the prescription drug for the beneficiary
was pre-approved by the beneficiary's Prescription Drug Plan.
D. Special Requirements for Dispensing Medications in a Disaster or Emergency
. 22. The United States Code of Federal Regulation Section subjected
Prescription D1:ug Plans to special requi~·ements during a disaster or emergency. .See 42 CFR
422.lOO(m). A declaration by the governor of a state or protectorate was. one of the triggering
events for these special requirements.
23. On or about January 31, 2020, as a result of the spread ofCOVID-19
within the United States, the HHS Secretary declared a national public health emergency, and, on
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or about March 13, 2020, the President of the United States issued Proclamation 9994 declaring
a national emergency retroactive to March 1, 2020. See 85 Fed. Reg. 15,337. At that time, the
President of the United States determined that COVID-19 was of sufficient severity and
magnitude to warrant an emergency determination under Section 50l(b) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, pursuant to Title 42, United ~tates
Code, Sections 5121-5207: As of December 2020, declarations had been made regarding the
COVID-19 public health emergency in all 50 States, the District of Columbia and the U.S .
. Territories, thus triggering the special requirements that are applicable to Prescription Drug
Plans.
24. These special requirements were designed to ensure that beneficiaries
received access to their prescription drug benefits during a disaster or emergency, such as the
COVID-19 pandemic. Prescription Drug Plans were required to, inter alia, waive prior
authorization requirements during a disaster or emergency, including during the COVID-19
public health emergency.
25. A pharmacy that had failed to comply with otherwise applicable
requirements could bill for prescription drugs that were purportedly dispensed to beneficiaries
during a state of disaster or emergency by using certain billing codes (an "Eme1:gency Override
Code"). One Emergency Overl'ide Code allowed a pharmacy to bill and receive reimbursement
for prescription drugs, such as Targretin Gel 1%, without receiving the prior authorization that
was generally required.
26. In addition, during a public health emergency as described in Section
l 135(g)(l)(B) of the Social Security Act, pursuant to Section 3714 of the Coronavirus Aid,
Relief and Economic Security ("CARES") Act, as implemented by CMS, Prescription Drug
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Plans were required to relax "refill-too-soon" edits ("Refill-Too-Soon Edits"). Refill-Too-Soon
Edits typically prevented a pharmacy from billing for dispensing multiple prescriptions of the
same medication, such as Targretin Gel 1%, to a single beneficiary within a single 30-day period.
Pursuant to Section 3714 of the CARES Act, however, Prescription Drug Plans were required to
suspend all quantity and days' supply limits under 90 days for all covered Medicare Part D
drugs, except for ce1tain exceptions not applicable here.
E. The Defendant and Relevant Entities
27. The defendant PETER KHAIM was a resident of Forest Hills, New York.
28. The defendant ARKADIY KHAIMOV was a resident of Forest Hills,
New York, and the defendant PETERKHAIM's younger brother.
29. Money Launderer 1, an individual whose identity is known to the Grand
Jury, was an international money launderer.
30. The defendants PETER KHAIM and ARKADIY KHAIMOV, together
with others, owned, controlled and operated the following thirteen companies, which were
incorporated under New York State Jaw (the "Scheme Pharmacies"):
(a) Spring RX was a New York corporation located at 111-50
Springfield Boulevard, Queens Village, New York;
(b) Zone Pharmacy was a New York corporation located at 125-20
111 th Avenue, Jamaica, New York;
(c) GAF Pharmacy was a New York corporation located at 98-100 E.
165th Street, Bronx, New York;
(d) Manipal Drugs was a New York corporation located at 280
Nostrand Avenue, Brooklyn, New York;
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(e) LPM Pharmacy was a New York corporation located at 7537 Main
Street, Flushing, New Yark;
(f) Sterling Drugstore was a New York corporation located at 116-
22A Metropolitan Avenue, Richmond Hill, New York;
(g) SEY Drugs Inc., which also operated as "Jamaica Pharmacy," was
a New York corporation located at 8924 163rd Street, Jamaica, New York;
(h) JP RX, which also operated as "Maccabi Pharmacy," was a New
York corporation located at 7618 Jamaica Avenue, Jamaica, New York;
(i) Merrick RX Inc., which also operated as "Burns Pharmacy," was a
New York corporation located at 6804 Burns Street, Forest Hills, New York;
U) IVS Pharmacy was a New York corporation located at 185-08
Union Turnpike, Suite 109, Fresh Meadows, New York;
(k) 1105 JTP LLC, which also operated as "Genome Pharmacy," was
a New York corporation located at 1105 Jericho Turnpike, New Hyde Park, New York;
(1) Malvina Drug Corp. was a New York corporation located at 300
Hempstead Turnpike, Suite 214, West Hempstead, New York; and
(m) Merrick Wellness was a New York corporation located at 126-14
Merrick Boulevard, Suite F, Jamaica, New York.
31. The Scheme Pharmacies were registered with the·New York State Office
of the Professions as pharmacy establishments.
32. Money Launderer 1 owned, controlled and operated the companies that
were used to launder the proceeds of the fraudulent scheme obtained by the Scheme Pharmacies
(the "Pass~Through Entitie~"). Many of the Pass-Through Entities contained the word
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"wholesale" in their name or were purposefully named after legitimate pharmaceutical wholesale
companies.
II. The Illegal Schemes
A. The Fraudulent Scheme
33. From in or about and between August 2018 and August 2020, the
defendants PETE~ KHAIM and ARKADIY KHAIMOV, together with others, obtained
ownership and contro.l of the Scheme Ph~rmacies by creating new corporations under New York
State law and acquiring pre-existing pharmacies.. KHAIM and KHAIMOV concealed and
disguised theit- involvement in the Scheme Pharmacies by paying nominee owners to open bank
accounts for the Scheme Pharmacies and by falsely representing their respective ownership
rights to the Scheme Pharmacies, when in fact KHAIM and KHAIMOV owned and controlled
the Scheme Pharmacies and th~ associated bank accounts. KHAIM and KHAIMOV used the
nominee owners' means of identification, including, but not limited to, the nominee owners'
name.s and signatures, to, among other things, submit New Yorlc Pharmacy Applications, open
bank accounts and i·eceive and transfer the proceeds of the fraudulent scheme.
34. The defendants PETER KHAIM and ARK.ADIY KHAIMOV, together
with others, also paid licensed pharmacists to act as Supervising Pharmacists of the Scheme
Pharmacies in pame only, when in fact these individuals never performed the duties of a
Supervising Pharmacist.
35. The defendants PETER KHAIM and ARK.ADIY KHAIMOV, together
with others, then submitted and caused the submission of false and fraudulent New York
Pharmacy Applications for the Scheme Pharmacies that (a) made false representations about the
ownership of the Scheme Pharmacies and failed to disclose KHAIM and KHAIMOV's roles as
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owners, officers, partners, members ana principal stockholders of the Scheme Pharmacies; and
(b) made false and fraudulent representations that ce1tain licensed pharmacists were the
Supervising Pharmacists of the Scheme Pharmacies, even though the licensed pharmacists did
not carry out the roles and responsibilities of a Supervising Pharmacist as required by New York
State law.
36. As the effects of the COVID-19 pandemic began to be felt in the United
States, the defendants PETER KHAIM and ARKADIY K.HAIMOV, together with others,
capitalized on the national emergency for their own financial gain by using the Emergency
Override Code and the relaxation of the Refill-Too-Soon Edits to submit additional false and
fraudulent claims for Targretin qel 1% that was never dispensed by the Scheme Pharmacies.
37. While the Emergency Override Code was designed to ensure that
beneficiaries received access to needed medications during the COVID-19 public health
emergency, and as the New York metropolitan area became the epicenter of the COVID-19
outbreak in the United States in the spring of 2020, the defendants PETER KHAIM and
ARKADIY KHAIMOV, together with others, fraudulently caused an exponential increase in the
number and value of claims that were submitted by the Scheme Pharmacies for Targretin Gel
I%. KHAIM AND KHAIMOV fraudulently submitted and cau~ed the submission of claims for
Targretin Gel 1% that was not actually dispensed by (a) inappropriately overriding the
requirement of the Prescription Drug Plans that the Scheme Pharmacies receive prior
authorization before being reimbursed for purpo1tedly dispensing Targretin Gel 1%; and (b)
fraudulently overriding the Refill-Too-Soon Edits of the Prescription Drug Plans in order to
submit claims for multiple 30-day supplies ofTargretin Gel 1% that were purpmtedly dispensed
to a single beneficiary. As a result, payments by the Prescription Drug Plans to the Scheme
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Pharmacies correspondingly spiked in the months after the declaration of the COVID-19 public
health emergency. For example, payments for Targretin Gel 1% to one of the Scheme
Pharmacies, Zone Pharmacy, increased from an average of under $12,000 per month in the nine
months preceding COVID-19 to nearly $2 million per month from approximately March 2020 to
May 2020.
38. The defendants PETER KHAIM and ARKADIY KHAIMOV, together
with others, submitted and caused the submission, including by interstate wire, of fraudulent
claims for prescription drugs purp01tedly dispensed by the Scheme Pharmacies. The
prescription drugs KHAIM and KHAIMOV sought reimbmsement for were never in fact: (a)
purchased or stocked by the Scheme Pharmacies; (b) dispensed by the Scheme Pharmacies to
beneficiaries; (c) prescribed by the medical professionals who were represented to have
authorized and prescribed them; and (d) medically necessary and reasonable. These
prescriptions included, among other things, Targretin Gel 1%.
39. The defendants PETER K.HAIM and ARKADIY KHAIMOV, together
with others, also submitted and caused the submission, including via interstate wire, of
fraudulent claims for prescription drugs, including Targretin Gel 1%, that were purportedly
dispensed by the Scheme Pharmacies during time pei·iods that the Scheme Pharmacies wet·e
defi.mct, non-operational, not licensed, without employees and not supervised by a Supervising
Pharmacist as required by New York State law.
40. Moreover, the defendants PETER K.HAIM and ARKADIY K.HAIMOV,
together with others, sought to conceal ai1d disguise the scheme by, among other things,
(a) creating and causing the creation of the Pass-Tlu·ough Entities and assigning names to ce1tain
of the Pass-Through Entities to make them appear to be legitimate pharmaceutical wholesale
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companies; (b) creating and causing the creation of false references on checks to invoice
numbers to make it appear as if the checks were used by the Scheme Pharmacies to purchase
pharmaceutical drugs from the Pass~Through Entities when, in fact, they were not; and (c)
transferring funds from the Scheme Pharmacies to the Pass-Through Entities that were purported
payments for pharmaceutical drugs, including Targretin Gel 1%, purportedly dispensed by the
Scheme Pharinacies to the Pass-Through Entities, when, in fact, no drugs were purchased or
dispensed.
41. The defendants PETER KHAIM and ARKADIY KHAIMOV, together
with others, submitted and caused the submission, including via interstate wire, of over $30
million in claims for Targretin Gel 1% to the Prescription Drug Plans, including claims that were
medically unnecessary and not ordered 'by a medical professional, as represented in the submitted
claims, and never provided to the beneficiary by the -Scheme Pharmacies.
B. The Money Laundering Scheme·.
42. From in or about and between September 2019 and August 2020, the
defendants PETER KHAIM and ARK.A.DIV KHAIMOV, along with others, caused Money
Launderer 1 to create or o·therwise establish or acquire the Pass-Through Entities to further their
fraudulent scheme. .KHAIM and KHAIMOV, togethet· with others, assigned names to ce11ain of
the Pass-Through Entities to closely resemble the names of real pharmaceutical wholesale
companies. Moreover, KHAIM and KHAIMOV, together with others, paid and caused
payments to be made to various individuals to open bank accounts for the Pass-Through Entities.
In order to open the bank accounts, the individuals made false statements to financial institutions
and others about the ownership of the Pass-Through Entities.
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43. The defend;mts PETER KHAIM and ARKADIY KHAIMOV, together
with others, concealed and disguised the nature, location, source, ownership and control of the
proceeds from the fraudulent scheme by causing the transfer of the fraud proceeds from the
Scheme Pharmacies to the Pass-Through Entities, from which KHAIM, KHAIMOV and their
co-conspirators sent money to oth~r bank accounts in the United States and abroad.
44. The defendants PETER KHAIM and ARKADIY KHAIMOV, together
with others, also created and caused the creation ofreferences on checks for payment of
fabricated or non-existent invoices to make it appear like the Scheme Pharmacies were
purchasing pharmaceutical drugs from the Pass-Through Entities when they in fact were not:
45. In the first phase of the scheme, PETER KHAIM and ARKADIY
KHAIMOV, along with others, dissipated, transformed and concealed the nature, source,
location, ownership, control and origin of the fraud proceeds by causing the Pass-Through
. .
Entities to wire funds to companies in China to pay for goods purported!¥ ordered by businesses
in Uzbekistan. These funds were in turn used to pay certain individuals in Uzbekistan who were·
designated by customers of.an unlicensed money services business in Queens, New York. In
exchange, KHAIM and KHAIMOV, along with others, received a corresponding amount of cash
from Money Launderer 1, minus a commission, that was supplied by members of the Uzbek
community to the unlicensed money services business for transfer to certain individuals in
Uzbekistan.
46. In the second phase of the scheme, when the reimbursements paid by the
Prescription Drug Plans for Targretin Gel 1% exceeded the amount of cash available to the
unlicensed money services business, the defendants PETER KHAIM and ARKADIY
KHAIMOV, together with others, including Money Launderer I, dissipated, transformed and
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concealed the nature, source, location, ownership, control and origin of the fraud proceeds by
causing the nominee account signatories on the Pass-Through Entities to (a) withdraw cash and
have it delivered, at times in the middle of the night, to KHAIMOV and his relatives; and (b)
purchase millions of dollars in ce1tified checks and write personal checks made payable to
KHAIMOV and KHAiM, their relatives, other individuals designated by KHAIMOV and
companies under KHAIMOV and K.HAIM's control.
47. The defendants PETER KHAIM and ARKADIY KHAIMOV dissipated
the :fraud proceeds by transferring such proceeds to family members and others, investing such
proceeds in real estate located in the United States and abroad and purchasing jewelry and other
luxury items.
COUNTONB
(Conspiracy to Commit Health Care Fraud and Wire Fraud)
48. The allegations contained in paragraphs one tlu·ough 47 are realleged and
incorporated as if fully set forth in this paragraph.
49. In or about and between September 2019 and December 2020, both dates
being approximate and inclusive, within the Eastern District ofNew York and elsewhere, the
defendants PETER KHAIM and ARKADIY KHAIMOV, together with others, did knowingly
and intentionally conspire:
(a) to execute a scheme and artifice to defraud one or more,health care
benefit programs, as defined in Title 18, United States Code, Section 24(b), to wit: the
Prescription Drug Plans, and to obtain by means of one or more materially false and fraudulent
pretenses, representations and promises, money and prope1ty owned by, and under· the custody
and control of, said health care benefit programs, in connection with the delivery of and payment
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for health care benefits, items and servfoes, contrary to Title 18, United States Code, Section ·
1347;and
(b) to devise a scheme and artifice to defraud the Prescription Drug
Plans, and to obtain mo1:1ey and property from them by means of one or more materially false and
fraudulent pretenses, representations and promises, and for the purpose of executing such scheme
and a1tifice, to transmit and cause to be transmitted by means of wire communications in
interstate commerce writings, signs, signals, pictures and sounds, contrary to Title 18, United
States Code, Section 1343.
(Title 18, United States Code, Sections 1349 and3551 etmm.)
COUNT TWO
(Conspiracy to Commit Money Laundering)
50. The allegations contained in paragraphs one through 47 are realleged and
. incorporated as if fully set f01th in this paragraph.
51. In or about and between September 2019 and December 2020, both dates
being approximate and inclusive, within the Eastern District of New York and elsewhere, the
defendants PETER KHAIM and ARK.ADIY KHAIMOV, together with others, did knowingly
and intentionally conspire to c01mnit offenses under Title 18, Unitetj States Code, Sections 1956
and 1957, to wit:
(a) to conduct and attempt to conduct financial transactions involving
the proceeds of one or more specified unlawful activities, to wit: (i) wire fraud, in via lation of
Title 18, United States Code, Section 1343; (ii) health care fraud, in violation of Title 18, United
States Code, Section 1347; and (iii) conspiracy to commit health care fraud, in violation of Title
18, United States Code, Section 1349, knowing that the prope1ty involved in the transactions
represented the proceeds of some form of unlawful activity, and knowing that the transactions
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were designed in whole and in part to conceal and disguise the nature, location, source,
ownership and control of the proceeds ·of the specified unlawful activity, contrary to Title 18,
United States Code, Section I956(a)(l)(B)(i); and
(b) to transp011, transmit and transfer, and attempt to transp011,
transmit and transfer monetary instruments and funds from a place in the United States to and
tlu-ough a place outside of the United States, knowing that the monetary instruments and funds
involved in the transp011ation, transmission and transfer represented the proceeds of some form
of unlawful activity, and knowing that such transportation, transmission and transfer was
designed in whole and ·in part to conceal and disguise the nature, location, source, ownership and
control of the proceeds of the specified unlawful activity, to wit: (i) wire fraud, in violation of
Title 18~ United States Code, Section 1343; (ii) health care fraud, in violation of Title 18, United
States Code, Section 1347; and (iii) conspiracy to commit health care fraud, in violation of Title
18, United States Code, Section 1349;
· (c) to engage and attempt to engage in one or more monetary
transactions in criminally derived property of a value-greater than $10,000 and derived from one
or more specified·unlawftil activities, to wit: (i) wire :fraud, in violation of Title 18, United States
Code, Section 1343; (ii) health care fraud, in violation ofTitle 18, United States Code, Section
1347; an,d (iii) conspiracy to commit health care fraud, in violation of Title 18, United States
Code, Section· 1349, contrary to Title 18, United States Code, Section 1957.
(Title 18, United States Code, Sections 1956(h) and 3551 et~.)
COUNTS THREE THROUGH SIX
(Concealment Money Laundering)
52: The allegations contained in paragraphs one through 4 7 are realleged and
incorporated as if fully set forth in this paragraph.
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53. On the.dates set forth below, within the Eastern District ofNew York and
elsewhere, the defendants PEJ'ER KHAIM and ARKADIY KH.AIMOV, together with others,
did knowingly and intentionally conduct and attempt to conduct one or more financial
transactions affecting interstate and foreign commerce, which financial transactions involved the
proceeds of one or more specified unlawful activities, to wit: (i) wire fraud, in violation of Title
18, United States Code, Section 1343; (ii) and health care fraud, in violation ofTitle 18, United
States Code, Section 1347, knowing that the property involved in such transactions represented
the proceeds of some form of unlawful activity, and lrnowing that such transactions were
designed in whole and in part to conceal and disguise the nature, Io.cation, source, ownership,
and control of the proceeds of one or more of the specified unlawful activities, as set fo1ih below:
A1rnroximate
Count Defendant Transaction
Date
Deposit of a cashier's check number
1371712276 in the approximate.amount of
PETER $280,000 into account number ending in
THREE May 18, 2020
KHAIM 7356, belonging to PETER KHAIM, and
drawn on account number ending in 1955
Deposit of check number 100 in the
approximate amount of$20,000, and drawn.
PETER
FOUR KHAIM
January 13, 2020 on Zone Pharmacy account number ending
2008
a
Deposit of cashier's check number
115678669 i.n the approximate amount of
$200,000 into account number ending in
ARKADIY 6644, belonging to ARKADIY KHAIMOV,
FIVE .April 17, 2020
KHAIMOV and drawn on the account of Company 1, an
entity the identity of which is known to the
Grand Jury
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A1rnroximate
Count Defendant Transaction
Date
Transfer of approximately $1,000,000 from
account number ending 6644, belonging to
ARKADIY ARKADI.Y KHAIMOV, to account number
SIX May 28, 2020
KHAIMOV ending in 7707, belonging to Relative 1, a
relative of ARKADIY KHAIMOV whose
identity is lmown to the Grand Jury
(Title 18, United States Code, Sections 1956(a)(l)(B)(i), 2 and 3551 et~.)
COUNT SEVEN
(Aggravated Identity Theft)
54. The allegations contained in paragraphs one through 47 are realleged and
incorporated .as if fully set fo1th in this paragraph.
55. In or about and between March 2020 and May 2020, both dates being
approximate and inclusive, within the Eastern District of New York and elsewhere, the defendant
PETER KHA~M, together with others, during and in relation to the crime charged in Count One,
did knowingly and intentionally transfer, possess and use, without lawful authority, any means of
identification of one or more other person, to _wit: John Doe, an individual whose identity is
known to the Grand Jury, knowing that the means of identification belonged to another person.
(Title 18, United States Code, Sections 1028(A)(a)(l), 1028A(b), 1028A(c)(5), 2
and 3551 et~-)
CRIMINAL FORFEITURE ALLEGATION AS TO COUNT ONE
56. The United States hereby gives notice to the defendants that, upon their
conviction of the offense charged in Count One, the government Will seek forfeiture in
accordance with Title 18, United States Code, Section 982(a)(7), which requires any person
convicted of a federal health care offense to forfeit prope1ty, real or personal, that constitutes, or
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is derived directly or indirectly from, gross proceeds traceable to the commission of such
offense.
57. If any of the above-described forfeitable prope1ty, as a result of any act or
omission of the defendants:
(a) cannot be located upon the exercise of due diligence;
(b) has been transferred or sold to, or deposited with, a third party;
(c) has been placed beyond the jurisdiction of the comt;
(d) has been substantially diminished in value; or
(e) has beei1 commingled with other prope1ty which cannot be divided
without difficulty;
it is the intent of the United.States, pursuant to Title 21, United States Code, Section 853(p). as
incorporated by Title 18, United States Code, Section 982(b)(l), to seek forfeiture of any other
prope1ty of the defendants up to the value of the forfeitable prope1ty described in this forfeiture
allegation.
(Title 18, United States Code, Sections 982(a)(7) and 982(b)(l); Title 21, United
States Code, Section 853(p))
CRIMINAL FORFEITURE ALLEGATION AS TO COUNTS TWO THROUGH SIX
58. The United States hereby gives notice to the defendants that, upon their
conviction of any of the offenses charged in Counts Two tlu·ough Six, the government will seek
forfeiture in accordance ~ith Title 18, United States Code, Section 982(a)(l), which requires any
person convicted of such offenses to forfeit aliy prope1ty, real or personal, involved in such
offenses, or any prope1ty traceable to such prope1ty.
59. If any of the above-described forfeitable prope1ty, as a result of any act or
omission of the defendants:
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(a) cannot be located upon the exercise of due diligence;
(b) has been transferred or sold to, or deposited with, a third party;
(c) has been placed beyond the jurisdiction of the comt;
(d) has been substantially diminished 41 value; or
(e) has been commingled with other prope1ty which cannot be divided
.without difficulty;
it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), as
incorporated by Title 18, United States Code, Section 982(b)(1 ), to seek .
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forfeiture of any other property of the defendants up to the value of the forfeitable prope1ty
described in this forfeiture allegation.
(Title 18, United States Code, Sections 982(a)(l) and 982(b)(l); Title 21, United
States Code, Section 853(p))
A TRUE BILL
FOREPERSON
ACTING UNITED STATES ATTORNEY
EASTERN DISTRICT OF NEW YORK
·D~'UDL .l'>...t\.[].!'I
ACTING CHIEF, FRAUD SECTION
CRIMINAL DIVISION ·
U.S. DEPARTMENT OF JUSTICE
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F. # 2020RO 1145
FORMDBD-34 No.
JUN.BS
UNITED STATES DISTRICT COURT
EASTERN District of NEW YORK
CRIIvllNAL DIVISION
THE UNITED STATES OF AMERICA
vs.
PETERKHAIM
and
ARKADIYKHAIMOV,
Defendants.
INDICTMENT
(T. 18, U.S.C., §§ 982(a)(l), 982(a)(7), 982(b)(l), 1028A(a)(l), 1028A(b),
1028A(c)(5), 1349, 1956(a)(l)(B)(i), 1956(h), 2 and 3551 fil~; T. 21,
. U.S.C., § 853(p))
A true bill.
Foreperson
Filed in open court this _________________ day,
of ------------ A.D. 20 -----
Clerk
Bqil, $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Andrew Estes, Trial Attorney (718) 254-6250
23
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