Manhattan’s Alexander Burman, a/k/a “Alexander Burman,” has been handed a 10-year prison sentence for orchestrating a $26 million scheme to defraud Medicare and Medicaid. The Southern District of New York’s Acting U.S. Attorney, Joon H. Kim, announced the sentence imposed by U.S. District Judge Paul G. Gardephe.
In a meticulous operation, Burman ran six medical clinics in Brooklyn, where he and his co-conspirators deceitfully billed for over $26 million worth of unnecessary services and equipment. They paid elderly and financially vulnerable patients cash kickbacks to undergo these treatments, then falsely claimed the Clinic Doctors provided them, further bilking the systems.
Burman’s fraud was a two-pronged attack: he not only paid kickbacks for fraudulent services but also exploited other companies for additional gains. Prescriptions from his clinics were used by a supply company partly owned by Burman to bill Medicaid over $3.5 million for non-existent medical equipment, while referrals led transportation companies to defraud Medicaid of millions.
On March 18, 2016, Burman pleaded guilty before U.S. Magistrate Judge Henry B. Pitman to conspiring to commit wire fraud and health care fraud. He was also charged with committing an offense while on pretrial release in a prior criminal case.
Burman’s sentence includes a $16,686,811 forfeiture order, of which $1.8 million and 22 pieces of real estate have already been seized. He is additionally required to pay $18,683,691 in restitution and serve three years of supervised release upon his prison term.
Nine former employees of the Burman clinics and one associate are facing charges in a separate case for related activities. These defendants await trial under United States District Judge Lorna G. Schofield in United States v. Vaid.
Acting U.S. Attorney Joon H. Kim commented, “Aleksandr Burman victimized both patients and taxpayers. His fraudulent medical clinics were established to bilk Medicare and Medicaid, not to assist the elderly and disadvantaged.”
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|Organized Crime
- Source: Official Source ↗
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