Brooklyn, NY – In a stunning turn of events, Peter Khaim, 44, and his brother Arkadiy Khaimov, 41, both of Forest Hills, Queens, have been sentenced for their roles in an $18 million COVID-19 healthcare fraud and money laundering scheme. United States District Judge Ann M. Donnelly handed down a 97-month sentence to Peter Khaim, while his brother Arkadiy was previously sentenced on April 3, 2024, to six years behind bars.
The brothers pleaded guilty in November 2022 to conspiracy to commit money laundering, with Peter ordered to pay over $18 million in restitution and forfeit more than $2.7 million. Arkadiy faces a similar restitution payment of over $18 million and a forfeiture of over $9.6 million.
According to court documents, the Khaims and their co-conspirators owned and controlled over a dozen New York-area pharmacies that submitted millions in fraudulent Medicare claims. They exploited the COVID-19 pandemic, using ’emergency override’ billing codes for costly cancer medications like Targretin Gel 1% and Panretin Gel 0.1%, which were not prescribed by physicians or dispensed to patients.
The scheme involved over $18 million in criminal proceeds funneled through shell companies, including sham pharmacy wholesale firms that appeared legitimate. The funds were then sent to China and distributed to individuals in Uzbekistan, with some of the proceeds received in cash by the defendants. They used the money for luxury items and real estate.
Assistant United States Attorney Claire Kedeshian is handling forfeiture matters, while Trial Attorney Arun Bodapati prosecuted the case. The investigation was assisted by Fraud Section Principal Assistant Chief Jacob Foster and Assistant Chief Patrick Mott.
Peter Khaim
Age: 44
Forest Hills, Queens
E.D.N.Y. Docket No.: 20-CR-580 (AMD)
Arkadiy Khaimov
Age: 41
Forest Hills, Queens
E.D.N.Y. Docket No.: 20-CR-580 (AMD)
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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