NEW YORK — A federal jury convicted Tony Brown-Arkah, 78, of Brooklyn on 20 criminal counts for running a $52 million health care fraud, illegal narcotics distribution, and kickback scheme through his Brooklyn medical clinic, the Homeland Security Task Force announced.
Brown-Arkah owned American Medical Centers, a clinic that purported to provide substance abuse treatment but instead illegally prescribed Suboxone — a Schedule III narcotic designed to treat opioid use disorder — to lure patients whose prescriptions were then diverted to drug dealers operating inside and on the steps of the facility. “Tony Brown-Arkah siphoned millions from Medicare and Medicaid to fuel a criminal enterprise that exploited addicted and vulnerable patients,” said Homeland Security Investigations New York acting Special Agent in Charge Pete Gizas.
The jury returned guilty verdicts on one count of conspiracy to commit health care fraud, 12 counts of health care fraud, one conspiracy to distribute controlled substances, three counts of distribution of controlled substances, one conspiracy to defraud the United States and to pay and receive health care kickbacks, and two counts of receipt of health care kickbacks. A sentencing date has not yet been set.
Prosecutors presented evidence that many AMC patients received prescriptions signed by a nurse practitioner who lived in Florida and never saw or spoke with the patients. Brown-Arkah, who was not a medical provider, billed Medicare and Medicaid for office visits where he was the only staff member to meet with patients. Witnesses testified that patients were required to undergo invasive, medically unnecessary testing to obtain Suboxone prescriptions, and that laboratory results frequently showed patients were not even taking the medication — a significant warning sign of illegal diversion. One witness testified that Suboxone is commonly abused by prison inmates who boil the medication and drip it into users’ eyes. Another witness testified that an AMC staff member directed him to a van outside where he could sell his Suboxone for cash.
Brown-Arkah also paid illegal cash kickbacks to patients to fuel the scheme. An undercover recording captured Brown-Arkah describing others who pay patients illegal kickbacks and bill for medically unnecessary services, saying, “that’s why they go to jail … that’s when the government busts ’em!”
“By meticulously tracing prescriptions, claims data, and illicit payments, HSI New York, as a leading member of the Homeland Security Task Force, brings its unique authorities and capabilities to bear in the government’s fight against healthcare fraud,” Gizas said. “This investigation exposed the fake treatment, fraudulent testing, and kickback network that enabled the defendant and his scheme.”
The investigation was conducted by HSI, the Drug Enforcement Administration, the Department of Health and Human Services Office of Inspector General, and Internal Revenue Service Criminal Investigation, with assistance from the New York City Police Department and the New York City Human Resources Administration. The prosecution falls under the Homeland Security Task Force initiative established by Executive Order 14159, Protecting the American People Against Invasion, and is being led by the U.S. Attorney’s Office for the Eastern District of New York. A sentencing date for Brown-Arkah has not been scheduled.