Homeland Security Task Force secures clinic owner’s conviction for $52M health care fraud, illegal narcotics distribution and kickback scheme

NEW YORK - A federal jury convicted a New York man May 20 for his role in conspiracies to commit health care fraud, illegally distribute Suboxone, and pay and receive illegal health care kickbacks following a Homeland Security Task Force New York fraud investigation.

Tony Brown-Arkah, 78, of New York, was the owner of American Medical Centers, a medical clinic in Brooklyn that purported to provide substance abuse treatment. AMC lured patients to the clinic by illegally prescribing them Suboxone, a Schedule III narcotic designed to treat opioid use disorder, which, as one witness testified, is commonly abused by prison inmates by boiling the medication and dripping it into users' eyes. Brown-Arkah allowed a drug ring to proliferate inside and on the steps of his clinic where drug dealers offered to buy patients' Suboxone prescriptions for cash. One witness testified that an AMC staff member directed him to a van outside where he could sell his Suboxone if he did not want it.

"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. "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. This investigation exposed the fake treatment, fraudulent testing, and kickback network that enabled the defendant and his scheme. This conviction underscores the HSTF's unwavering focus and specialized skill in dismantling sophisticated health care fraud involving illicit narcotics distribution and, in turn, protecting public funds." 

Many patients at Brown-Arkah's clinic received prescriptions signed by a nurse practitioner who lived in Florida and did not see or speak with the patients. When they visited AMC, patients were met with a façade of substance abuse treatment and were required to undergo invasive, medically unnecessary testing to get Suboxone prescriptions. Brown-Arkah billed Medicare and Medicaid for services that were never provided, including office visits where Brown-Arkah, who was not a medical provider, was the only AMC staff person to meet with the patient. The evidence established that patients at AMC were frequently prescribed Suboxone when they were not taking the medication. Witnesses testified that these prescriptions were not medically necessary and can be dangerous, and that the lack of Suboxone in a patient's laboratory results is a significant warning sign of illegal diversion.

To fuel his scheme, Brown-Arkah paid illegal cash kickbacks to patients. One of these illegal payments was caught on video, depicted below, by a confidential source. In this undercover recording, Brown-Arkah describes 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!"

The jury convicted Brown-Arkah of conspiracy to commit health care fraud, 12 counts of health care fraud, conspiracy to distribute controlled substances, three counts of distribution of controlled substances, conspiracy to defraud the United States, and to pay and receive healthcare kickbacks, and two counts of receipt of healthcare kickbacks. A sentencing date has not yet been set.

In addition to HSI, the Drug Enforcement Administration, the Department of Health and Human Services Office of Inspector General, and Internal Revenue Service Criminal Investigation investigated the case. The New York City Police Department and the New York City Human Resources Administration assisted in the investigation.

This prosecution is part of the Homeland Security Task Force initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF New York comprises of agents and officers from HSI New York, the FBI New York Field Office, the IRS-CI New York Field Office, and the DEA New York Division. with the prosecution being led by the United States Attorney's Office for the Eastern District of New York.

Learn more about this case on Justice.gov.