Two individuals have been charged with a medical device and over-the-counter (OTC) drug fraud scheme in New York.
Moses Rabinowitz, the owner and president of medical supply distributor Trasco, LLC, and Menachim Samber, an employee of Trasco, have been arrested and charged with conspiracy to commit wire fraud and conspiracy to obtain pre-retail medical products by fraud or deception.
According to the indictment, Rabinowitz and Samber engaged in a scheme to obtain medical devices and OTC drugs from manufacturers at deeply discounted prices, claiming they would be sold outside the U.S. However, they intended to and did sell the products at a substantial profit to wholesalers, distributors, and others in the U.S.
The manufacturers relied on Rabinowitz and Samber’s false and fraudulent representations and sold their products to Trasco, GlobalMed International, Ltd., and Panamedica Trading, Inc. at deeply discounted prices, resulting in losses of more than $5 million.
Rabinowitz and Samber created and caused to be created false and fraudulent documentation to conceal their scheme, and arranged for the fraudulently obtained products to be diverted directly to locations within the U.S. and for ‘dummy’ shipments to be exported instead.
The U.S. Attorney’s Office for the Southern District of New York announced the indictment and arrest of Rabinowitz and Samber, who will be presented before U.S. Magistrate Judge Victoria Reznick.
Defendant: Moses Rabinowitz, also known as Mark Rabin
Criminal Charges: Conspiracy to commit wire fraud and conspiracy to obtain pre-retail medical products by fraud or deception
City and State: New York
Exact Date: January 3, 2019
Sentence or Outcome: Currently pending
Dollar Amounts: Over $5 million in losses
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Key Facts
- State: New York
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime
- Source: DOJ Press Release â†â€â€
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