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Nassau Pharmacy to pay $100,000 to resolve federal and New York False Claims allegations

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Christian Fernsby |
Nassau Pharmacy
America   Grossman admitted that she submitted or caused others to submit false claims

Attorney General Letitia James and United States Attorney for the Northern District of New York Grant C. Jaquith announced that Cathy Grossman, the owner and pharmacist-in-charge of Nassau Pharmacy, will pay $100,000 to resolve allegations that she and Nassau Pharmacy violated the federal and New York False Claims Acts by billing the federal and state governments for prescription drugs that Grossman and her staff never dispensed.

Grossman admitted that, from March 2010 through March 2017, she submitted or caused others to submit false claims for payment to Medicare and Medicaid for prescription drugs that she and the staff at Nassau Pharmacy never dispensed.

In some instances, she billed Medicare and Medicaid for drugs that patients never ordered or never picked up from Nassau Pharmacy.

In other instances, Grossman billed the government for brand name drugs but dispensed to her patients less expensive generic alternatives.

This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery.

The relator in this case will receive $22,000 of the settlement proceeds.


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