ALBANY, NY – Three individuals are facing federal charges after authorities uncovered a sophisticated, multi-state operation to defraud Medicaid and illegally profit from prescription drugs. Ciera Washington, age 35, of the Bronx, New York; Raven White, age 35, also of the Bronx; and Bryan Otero, age 36, of Wood-Ridge, New Jersey, have been indicted on charges of healthcare fraud, healthcare fraud conspiracy, and aggravated identity theft.
The indictment details a scheme spanning from April 2023 to October 2024, where White and Otero allegedly supplied Washington with stolen personal information – names, dates of birth, and crucially, Medicaid identification numbers. Washington then used this pilfered data to submit fraudulent prescriptions to pharmacies across multiple states, including within the Northern District of New York. This wasn’t a simple paper scam; the conspirators utilized rideshare services to collect the medications once filled, effectively turning Medicaid into their personal funding source.
The operation was coldly efficient. The fraudulently obtained drugs weren’t for legitimate medical use. Instead, Washington directed the delivery of the medications to Otero or other buyers, who then paid her for the stolen goods. This created a clear pipeline: stolen identities fueling fraudulent prescriptions, Medicaid footing the bill, and illicit resale for profit. Authorities are still working to determine the full scope of the drugs diverted and the financial losses incurred by the Medicaid system.
“As alleged, these defendants stole identities, submitted fraudulent prescriptions, got Medicaid to pay for those fraudulent prescriptions, and then sold the prescribed drugs,” stated Acting United States Attorney John A. Sarcone III. “This was an abuse of the system on multiple levels, across several states. Working with our law enforcement partners, we have stopped this pernicious scheme. The perpetrators will now be held fully accountable.” The FBI Albany Field Office, led by Special Agent in Charge Craig L. Tremaroli, echoed this sentiment, emphasizing the widespread nature of the fraud and its exploitation of vulnerable citizens and vital healthcare programs.
Naomi Gruchacz, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), highlighted the multi-faceted nature of the fraud, noting the theft of beneficiary information and the false claims for both transportation and medications. New York State Comptroller Thomas P. DiNapoli condemned the defendants for “callously preyed upon vulnerable New Yorkers,” emphasizing the damage inflicted on a program meant to serve those in need.
If convicted, the defendants face stiff penalties. The healthcare fraud and conspiracy charges carry a maximum term of 20 years in prison, a fine of up to twice the loss amount, and up to 3 years of supervised release. The aggravated identity theft charges carry a mandatory consecutive two-year prison sentence. However, sentencing is at the discretion of the judge, taking into account the specific violations, U.S. Sentencing Guidelines, and other relevant factors. The investigation is being conducted by the FBI, HHS-OIG, and the New York State Comptroller, with prosecution led by Assistant U.S. Attorney Jonathan S. Reiner.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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