An indictment was unsealed today, charging defendant Michael Milchin, 37, of Philadelphia, PA, with one count of conspiracy to commit health care fraud and five counts of health care fraud, announced Acting United States Attorney Louis D. Lappen. In addition, the indictment charges Milchin and the 13 defendants listed below with one count of conspiracy to distribute oxycodone:
NAME
ADDRESS
YEAR OF BIRTH
Augustine Lee
Philadelphia PA
1975
Nikita Latychev
Feasterville-Trevose PA
1988
Yaroslav Stadniychuk
Philadelphia PA
1989
Bryant Bishop
Philadelphia PA
1969
Ning Jian Du
Philadelphia PA
1984
Taras Trushchenko
Jamison PA
1978
Armen Khimoian
Warwick PA
1978
Linda Flamer
Philadelphia PA
1955
Igor Khavulya
Philadelphia PA
1981
Nik Palatnik
Feasterville-Trevose PA
1994
Vannarat Xayavongsithideth
Philadelphia PA
1982
Thearack Tham Kith
Philadelphia PA
1985
Sebastian Moeung
Philadelphia PA
1980
Each of the 13 defendants listed above is also charged with one count of distribution of oxycodone. In addition, Milchin is charged with fifteen counts of possession of oxycodone with the intent to distribute.
According to the indictment, Milchin became involved in two criminal agreements: first, from approximately June 2010 until approximately July 2012, a conspiracy to commit health care fraud with a chiropractor, John Vira, who is charged elsewhere; and second, from approximately May 2012 until approximately March 2015, a separate conspiracy with the other 13 charged defendants listed above, to distribute oxycodone.
Concerning the health care fraud conspiracy and substantive health care fraud charges, the indictment alleges that Milchin, who is not a medical professional, was the business manager at Vira’s office, Central Bucks Health Associates, located in Southampton PA. The indictment charges that Milchin and Vira worked together to defraud private insurance companies, Independence Blue Cross and Aetna, Inc., by billing those insurers more than $700,000 for chiropractic services that were never provided.
Concerning the drug distribution charges, the indictment alleges that Milchin conspired with the 13 defendants listed above to fill hundreds of fraudulent prescriptions for oxycodone at various pharmacies in and around Philadelphia. Milchin then sold the fraudulently obtained pills to others. The indictment charges that while the fraudulent prescriptions purported to be written by a physician with Central Bucks Health Associates, the physician in question had no affiliation with Central Bucks Health Associates and never authorized any of the prescriptions.
"The exploitation of the healthcare system through fraudulent claims for personal gain affects all of us who rely on that system," said Acting United States Attorney Louis D. Lappen. “The trafficking of oxycodone completely devastates individuals, their families and all of our communities. We remain dedicated to prosecuting those who illegally exploit the healthcare system and fuel the opioid epidemic."
If convicted, defendant Michael Milchin faces a maximum possible sentence of 5 years’ imprisonment for conspiracy to commit health care fraud and 10 years’ imprisonment for each count of health care fraud. In addition, each defendant faces a maximum possible sentence of 20 years’ imprisonment for conspiracy to distribute oxycodone and 20 years’ imprisonment for each count of distributing oxycodone or possessing oxycodone with the intent to distribute. Milchin also faces full restitution on the health care fraud charges.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Source: U.S. Department of Justice, Federal Bureau of Investigation (FBI)
