NJ woman arrested for $10M pharmacy fraud scheme

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KINNELON, N.J. (1010 WINS) — A New Jersey woman was arrested on Friday for using pharmacies she controlled to bill insurance companies for non-existent prescriptions, according to the DOJ.

Aysha Khan, a 33-year-old from Kinnelon, controlled a network of pharmacies in New Jersey, New York, Texas and Florida that would often fill expensive specialty medications, according to the criminal complaint.

Prosecutors accused her of “systematically and intentionally” billing insurance companies for refills of medications without ever dispensing them to patients.

From 2015 to 2022, Khan’s alleged scam netted her more than $10 million in reimbursement payments from Medicare for prescriptions that were never filled, according to officials.

She was charged with one count of conspiracy to commit health care fraud and four counts of health care fraud.

She faces up to 50 years in prison and a substantial fine if convicted on all counts.