Three people have been indicted on charges of healthcare fraud, conspiracy to commit healthcare fraud, and aggravated identity theft following an alleged multi-state prescription scheme. The defendants—Ciera Washington and Raven White, both 35 and from the Bronx, New York, and Bryan Otero, 36, of Wood-Ridge, New Jersey—were arrested after a federal indictment was unsealed.
According to the indictment, between April 2023 and October 2024, White and Otero provided Washington with personal information such as names, dates of birth, and Medicaid identification numbers belonging to various individuals. Using this data, Washington allegedly submitted fraudulent prescriptions at several pharmacies in different states including those in the Northern District of New York. Rideshare drivers were then sent to collect the medications from these pharmacies. The cost of these drugs was largely covered by Medicaid. The indictment further alleges that Washington arranged for the stolen medications to be delivered to Otero or other buyers who paid her for them.
The charges are accusations at this stage; all three defendants are presumed innocent unless proven guilty in court.
Acting United States Attorney John A. Sarcone III stated: “As alleged, these defendants stole identities, submitted fraudulent prescriptions, got Medicaid to pay for those fraudulent prescriptions, and then sold the prescribed drugs. This was an abuse of the system on multiple levels, across several states. Working with our law enforcement partners, we have stopped this pernicious scheme. The perpetrators will now be held fully accountable.”
FBI Special Agent in Charge Craig L. Tremaroli commented: “The alleged fraud in this case was widespread, compromising not just personally identifiable information of our citizens, but also exploiting Medicaid and our healthcare systems. The FBI will continue to work with all our federal law enforcement partners to investigate and bring to justice anyone looking to defraud valuable government programs meant to help those in need in order to line their own pockets.”
Special Agent in Charge Naomi Gruchacz with HHS-OIG said: “The defendants in this case perpetrated multiple avenues of fraud against the Medicaid program by stealing beneficiary information and causing false claims to be submitted for transportation and medications, which were diverted and sold. HHS-OIG will continue to work with our law enforcement partners to ensure the integrity of the federal health care system and hold accountable those engaging in fraud that targets its programs.”
New York State Comptroller Thomas P. DiNapoli added: “Ciera Washington,Raven White and Bryan Otero are alleged to have callously preyed upon vulnerable New Yorkers in a complex scheme to defraud our state’s Medicaid system and illegally peddle drugs. Medicaid fraud undermines a vital program that provides health care to people in need. My thanks to Acting U.S. Attorney Sarcone, the Federal Bureau of Investigation and the Department of Health and Human Services for their partnership in protecting Medicaid’s integrity and bringing these individuals to justice.”
If convicted on healthcare fraud or conspiracy charges, each defendant faces up to 20 years imprisonment along with fines potentially amounting up to twice any loss caused by their actions; they may also face supervised release terms up to three years. Aggravated identity theft carries a mandatory two-year prison sentence consecutive with any other sentence imposed.
The investigation is being conducted by the FBI (https://www.fbi.gov/), HHS-OIG (https://oig.hhs.gov/), and New York State Comptroller’s Office (https://www.osc.ny.gov/). Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.
