NEW YORK, NY – Nerik Ilyayev and Mukhiddin Kadirov pleaded guilty to healthcare fraud and money laundering offenses, admitting to schemes that resulted in losses of over $6 million. The pleas were entered before U.S. District Judge Gregory H. Woods.
Ilyayev used two pharmacies in New York to submit fraudulent Medicare and Medicaid claims connected to HIV medications and no-fault automobile insurance. Kadirov facilitated the laundering of several million dollars derived from the healthcare fraud schemes.
From February 2021 to March 2022, Ilyayev operated a Manhattan pharmacy and recruited low-income HIV patients, submitting fraudulent insurance claims for their medications. Medicare and Medicaid paid approximately $5.2 million in these fraudulent claims. Ilyayev then took control of another pharmacy in Queens, defrauding automobile insurance providers of around $1.2 million.
Kadirov was part of a money laundering network under FBI investigation since 2020. Kadirov laundered about $4.2 million of the pharmacy’s fraud proceeds using bank accounts in the name of shell companies.
Ilyayev, 36, faces a maximum potential sentence of 10 years in prison for one count of conspiracy to commit healthcare fraud. Kadirov, 44, faces up to 20 years in prison for one count of conspiracy to commit money laundering.