Taesung Kim, also known as "Terry," was sentenced on April 24 to 63 months in prison for conspiring to launder the proceeds of a $24.4 million pharmacy fraud scheme, according to federal prosecutors in Brooklyn. Kim, who pleaded guilty in December 2024, was also ordered by the court to pay $24.4 million in restitution and forfeit $6 million from bank accounts and real estate linked to the scheme.
The sentencing highlights ongoing efforts by federal authorities to address large-scale health care fraud that targets programs like Medicare and Medicaid. The U.S. Attorney for the Eastern District of New York handles such federal crime prosecutions and represents civil matters within its jurisdiction according to its official website.
“Today, Taesung Kim was held accountable for the despicable crime of defrauding Medicare and Medicaid, vital federal health care programs that provide insurance coverage to the elderly and those who cannot afford health insurance,” said United States Attorney Joseph Nocella, Jr. “Fraudsters who think the government is an ATM they can blatantly plunder should take notice of the price this defendant will now pay for his greed.” Assistant Attorney General Colin M. McDonald said: “Mr. Kim’s scheme to pad his pockets with $24 million in taxpayer dollars by peddling unnecessary prescription drugs is despicable and dangerous.”
Kim co-owned several retail pharmacies in Brooklyn and Queens between 2015 and 2022, submitting false claims for medically unnecessary prescriptions by paying bribes or kickbacks to providers and patients. FBI Assistant Director James C. Barnacle stated: “Taesung (Terry) Kim attempted to hide years of health care fraud through illicit kickbacks and bribes... The FBI will continue to work with our law enforcement partners to identify and hold accountable individuals defrauding the American people.” HHS-OIG Acting Deputy Inspector General Scott J. Lampert added: “The defendant deliberately exploited patients and the Medicare program by orchestrating kickback schemes... Today’s sentence reinforces HHS-OIG’s continued commitment...to dismantling schemes that abuse federal health care programs.”
The U.S. Attorney's Office operates as the designated federal prosecutor's office covering Brooklyn, Queens, Staten Island, Nassau County, and Suffolk County as indicated on its official website. It maintains offices in Brooklyn and Central Islip per its official website, supports community outreach efforts according to its official site, is led by Breon Peace as noted online, and covers both criminal prosecutions as well as civil matters representation.
The Department of Justice recently created a National Fraud Enforcement Division focused on prosecuting those who misuse taxpayer funds—a mission that aligns with President Trump’s Task Force aimed at eliminating waste within benefit programs.
