Davis Ethical Pharmacy Not Living Up To Its Name; Allegedly Defrauded NYS out of $235,000
Published on August 14, 2013 · Filed Under Finance
(Long Island, NY) Davis Ethical Pharmacy stands accused of not living up to its name, as the Rockville Centre business becomes the center of an investigation into an alleged scam depriving New York of $235,000 over the course of a four-year period, according to NYS Comptroller Thomas DiNapoli in a release issued on Monday.
A dated view of Davis Ethical Pharmacy located on the corner of North Long Beach Avenue and Maple Avenue, Rockville Centre. Photo credit: Google Street Views
Located on North Long Beach Avenue, Davis Ethical Pharmacy allegedly collected $235,000 from both Medicaid and the New York State Health Insurance Program for fraudulent prescriptions that were never dispersed to their patients, said reports released on August 13.
According to the comptroller’s office, under investigation by the Nassau County district attorney’s office and the New York State Department of Financial Services are both Davis Ethical Pharmacy and its former owner, William Davis, who sold off the business to its current owners back in 2011.
The monetary discrepancy was discovered by state financial watchdog agency auditors, who discovered the suspicious payments when in the process of randomly examining the claims paid to Davis Ethical Pharmacy by Medicaid and the New York State Health Insurance Program; of 59,538 payments in total, the auditors stumbled across the alleged fraud by examining 840 of them, according to reports.
Davis Ethical Pharmacy was paid $7 million in total from Medicaid and the New York State Health Insurance Program, said the comptroller’s office.
State Comptroller DiNapoli lambasted the Rockville Centre business, saying that they had stolen money from the hard-working taxpayers of New York State.
“Davis Ethical Pharmacy and its former owner appear to have been anything but ethical, defrauding the NYSHIP and Medicaid programs of a significant amount of money,” he said, adding that former owner Davis had even allegedly gone so far as falsifying prescriptions from a dead physician.
Phone calls placed to Davis Ethical Pharmacy were not returned as of press time.