Nicholas Kaloudis, Oxycodone Distribution, New York 2015

Doctor Arrested for Distributing Oxycodone in New York

A Long Island doctor has been charged with operating a scheme to distribute thousands of oxycodone pills in exchange for cash payments. According to a complaint unsealed in Manhattan federal court, Nicholas Kaloudis, an endocrinologist, wrote medically unnecessary prescriptions for over 1,000 oxycodone pills between 2013 and 2015.

Kaloudis was arrested yesterday morning and presented before U.S. Magistrate Judge Michael H. Dolinger in the afternoon. The complaint alleges that Kaloudis charged hundreds or thousands of dollars in cash for 'patient visits' that involved little to no examination and resulted in the issuance of a prescription for a large quantity of oxycodone.

Oxycodone is a prescription-strength Schedule II narcotic used to treat severe and chronic pain conditions. However, the illegal market for oxycodone has been a growing concern, as it can result in addiction similar to codeine or morphine.

Kaloudis is charged with one count of conspiracy to distribute and possess with intent to distribute oxycodone, which carries a maximum sentence of 20 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

The investigation is ongoing, and the New York FBI Health Care Fraud Task Force was formed in 2007 to combat health care fraud in the greater New York City area. The task force comprises agents, officers, and investigators from various law enforcement agencies.

Manhattan U.S. Attorney Preet Bharara said, 'A physician contributing to the epidemic of pain medication abuse is a prescription for disaster.'

FBI Assistant Director Diego Rodriguez added, 'Selling scripts for cash is not a victimless crime, and those who violate the oath of their profession in this way are directly contributing to the illegal distribution of drugs sold on the street.'

Source: https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-and-fbi-assistant-director-announce-charges-against-doctor