New Jersey Pharmacy Owner and Administrator Wife Sentenced for Health Care Fraud

The owner of a Union City, New Jersey, pharmacy and his wife, who served as the pharmacy’s administrator, have been sentenced for their roles in a conspiracy to defraud pharmacy benefit managers (PBMs) and federal health care benefits providers, including Medicare and Medicaid, out of over $65 million. The couple were also charged with paying kickbacks and bribes to health care professionals and their staff in exchange for referrals of prescriptions.

Just the Facts

Prime Aid Pharmacies, now closed, operated specialty pharmacies out of Union City, New Jersey, and the Bronx, New York. As specialty pharmacies, they processed expensive medications used to treat various conditions, including hepatitis C, Crohn disease, and rheumatoid arthritis. Samuel Khaimov, 52, was a co-owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. His wife, Yana Shtindler, 48, was Prime Aid Union City’s administrator. Three other co-defendants were also alleged to have been part of the conspiracy.

According to the US Attorney’s Office, the Prime Aid Pharmacies initially obtained retail network agreements with several PBMs, allowing them to receive reimbursement payments for prescription medications, including specialty medications.

Starting in 2009, Khaimov and his co-defendants began to pay bribes to doctors and medical office employees in an effort to induce the physicians and their staff to steer prescriptions to Prime Aid Pharmacies. Bribes were in cash, check, and wire transfers, as well as expensive meals and other perks.

Prime Aid Union City also engaged in the fraudulent practice of billing health benefit providers and PBMs for medications which were never provided to patients. According to the indictment, from 2013 through 2017, Prime Aid Union City received at least $65 million in reimbursement payments from Medicaid, Medicare, and private health insurance for medications that were not only not provided to patients, but were never ordered or stocked by the pharmacy.

When routine audits showed that the pharmacy was billing but not dispensing medications, Shtindler instructed employees to falsify records submitted to PBMs, as well as to forge shipping records to make it look like medications were shipped to patients. 

The Sentence

Both Khaimov and Shtindler pled guilty. Khaimov was sentenced to 87 months total in prison (5 years for conspiring to commit health care fraud and 27 months for conspiring to violate the federal Anti-Kickback Statute). He was also sentenced to two 3-year terms of supervised release. His wife, Shtindler, was sentenced to 72 months in prison for conspiring to commit health care fraud, as well as 3 years of supervised release. The other co-defendants have pled guilty and are awaiting sentencing.

The Takeaway

The plea and sentencing were part of the Department of Justice’s 2025 National Health Care Fraud Takedown. As of June 30, 2025, the initiative resulted in charges against 324 doctors, nurse practitioners, pharmacists, and other health care professionals. The government does not take health care fraud lightly.

References:

National Health Care Fraud Takedown results in 324 defendants charged in connection with over $14.6 billion in alleged fraud. US Attorney’s Office, District of New Jersey. Published June 30, 2025. Accessed July 11, 2025. https://www.justice.gov/usao-nj/pr/national-health-care-fraud-takedown-results-324-defendants-charged-connection-over-146

Pharmacy owner sentenced to 87 months in prison and administrator sentenced to 72 months for their respective roles in a health care fraud and kickback scheme. United States Attorney’s Office, District of New Jersey. Published July 2, 2025. Accessed July 11, 2025.