Queens Pharmacy Owner Sentenced to 63 Months in Prison for Money Laundering Scheme

BROOKLYN, NY - Today, in federal court in Brooklyn, Taesung Kim, also known as "Terry," was sentenced today to 63 months in prison for conspiring to launder the proceeds of a $24.4 million pharmacy fraud scheme. In December 2024, Kim pleaded guilty to one count of conspiracy to commit money laundering. As part of his sentence, the Court ordered Kim pay $24.4 million in restitution and to forfeit $6 million in fraud proceeds, including several bank accounts and real properties.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Colin M. McDonald, Assistant Attorney General, head of the Justice Department's National Fraud Enforcement Division; James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Scott J. Lampert, Acting Deputy Inspector General for Investigations, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) announced the sentence.

"Today, Taesung Kim was held accountable for the despicable crime of defrauding Medicare and Medicaid, vital federal health care programs that provide insurance coverage to the elderly and those who cannot afford health insurance," stated United States Attorney Nocella. "Fraudsters who think the government is an ATM they can blatantly plunder should take notice of the price this defendant will now pay for his greed."

"Mr. Kim's scheme to pad his pockets with $24 million in taxpayer dollars by peddling unnecessary prescription drugs is despicable and dangerous," said Assistant Attorney General McDonald of the Justice Department's National Fraud Enforcement Division. "This administration is making clear: we will hold accountable anyone who jeopardizes the health of millions of American adults by stealing from Medicare."

"Taesung (Terry) Kim attempted to hide years of health care fraud through illicit kickbacks and bribes. Through the hard work of the FBI and the Department of Health and Human Service - Office of the Inspector General, we were able to peel back the layers of deception to uncover this criminal scheme," stated FBI Assistant Director in Charge Barnacle. "The FBI will continue to work with our law enforcement partners to identify and hold accountable individuals defrauding the American people."

"The defendant deliberately exploited patients and the Medicare program by orchestrating kickback schemes and laundering millions in fraudulent prescription proceeds to fuel his own greed," stated HHS-OIG Acting Deputy Inspector General Lampert. "Today's sentence reinforces HHS-OIG's continued commitment, alongside our law enforcement partners, to dismantling schemes that abuse federal health care programs and ensuring those who perpetrate them are brought to justice."

Kim co-owned several retail pharmacies in Brooklyn and Queens, New York. Between 2015 and 2022, Kim's pharmacies submitted approximately $24.4 million in claims to Medicare for medically unnecessary prescription drugs. Kim, working with others, acquired prescriptions by paying bribes and cash kickbacks to medical providers and purported patients. He and his co-conspirators gave bribes to medical providers in the form of office rent and staff to induce them to direct prescriptions to the pharmacies, and he paid customers in the form of supermarket gift certificates and cash to induce them to fill prescriptions at their pharmacies. Kim laundered the proceeds of the scheme through various trading companies which gave the appearance that he was conducting legitimate business; facilitated the kickbacks and bribes; and distributed profits among the pharmacies' owners. On October 16, 2025, Kim's partner and co-conspirator, Feng "Jeff" Jiang, was sentenced to 15 months' imprisonment for his role in the money laundering conspiracy.

On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.

Trial Attorney Patrick J. Campbell of the Criminal Division's Fraud Section prosecuted the case. Assistant United States Attorney Tanisha R. Payne of the Office's Asset Forfeiture Section is handling forfeiture matters.

The Defendant Sentenced Today:

TAESUNG KIM (also known as "Terry")
Age: 61
Harrison, New York

E.D.N.Y. Docket No. 23-CR-191 (DG)

The Defendant Previously Sentenced:

FENG JIANG (also known as "Jeff")
Age: 43
Flushing, Queens

E.D.N.Y. Docket No. 24-CR-264 (ARR)