Federal prosecution records under case number 2013r01804 and court docket number 17-cr-00183 represent a major crackdown on organized healthcare fraud and illegal financial schemes. This major federal action centers on large-scale pharmacy billing schemes, false medical claims, and complex money laundering networks.
Federal prosecutors filed these formal criminal actions to hold fraudulent operators accountable. They also recovered millions of dollars in stolen public and private healthcare funds.
You will discover the full history behind the criminal indictments in this guide. We break down the charges, financial forfeiture orders, and victim restitution procedures for 2026.
Federal authorities uncovered tens of millions of dollars in fraudulent billing across multiple specialty pharmacies. That staggering figure makes this prosecution one of the most significant healthcare enforcement actions in recent history.
Case Number 2013R01804 and Court Docket Number 17-CR-00183 Overview
Case number 2013r01804 and court docket number 17-cr-00183 refer to a major federal criminal healthcare fraud prosecution in New York. The case involves illegal pharmacy operations, kickback schemes, and systematic money laundering networks.
The primary identifier 2013R01804 represents the internal file number used by federal prosecutors. The second identifier 17-CR-00183 represents the official criminal docket filed in federal court.
Together, these numbers track a massive enforcement action led by the Department of Justice. The government aimed to dismantle a multi-million dollar fraud ring that exploited prescription benefit programs.
| Case Detail | Official Information |
|---|---|
| USAO Tracking File | 2013R01804 |
| Federal Court Docket | 17-CR-00183 |
| Judicial District | Eastern District of New York |
| Primary Allegations | Healthcare Fraud, Wire Fraud, Money Laundering |
| Target Programs | Medicare, Medicaid, Private Health Plans |
Federal Indictment Details and Criminal Charges
The federal indictment in this action lists multiple felony counts including conspiracy to commit healthcare fraud, wire fraud, and money laundering. These formal charges accuse the defendants of submitting false claims for high-cost prescription drugs.
Federal grand juries return indictments when prosecutors establish probable cause of criminal conduct. In this matter, the indictment detailed how corporate entities concealed unauthorized pharmacy billings.
The defendants faced severe statutory penalties under Title 18 of the United States Code. Each substantive fraud count carried potential prison sentences reaching ten to twenty years.
- Conspiracy to Commit Healthcare Fraud: 18 U.S.C. Section 1349
- Substantive Wire Fraud Charges: 18 U.S.C. Section 1343
- Conspiracy to Launder Monetary Instruments: 18 U.S.C. Section 1956
- Unlawful Financial Transactions: 18 U.S.C. Section 1957
Eastern District of New York Court Records
The official court records for docket 17-CR-00183 reside in the United States District Court for the Eastern District of New York. The courthouse in Brooklyn manages all filings, motions, and hearings for this proceeding.
Federal judges in the Eastern District oversee the enforcement of criminal judgments in this matter. They also supervise restitution accounts and asset forfeiture distributions.
Court clerks maintain the complete public record through the federal PACER database system. Anyone can inspect docket entries, transcripts, and judicial orders tied to the action.
Quick Facts: Court Jurisdiction
- Jurisdiction: United States District Court
- Division: Eastern District of New York (Brooklyn)
- Presiding Office: Clerk of Court, EDNY
- Public Access: PACER Case Search SystemKey Takeaway: Federal prosecutors in Brooklyn filed case 2013R01804 and docket 17-CR-00183 to dismantle an extensive healthcare billing and money laundering enterprise.
Healthcare Fraud and Money Laundering Allegations
The criminal allegations describe an elaborate system designed to bill insurers for medications that were never dispensed. The conspirators set up wholesale distributor accounts to make sham transactions appear legitimate.
They routed illicit proceeds through shell companies to hide the true source of the stolen money. This complex layering of bank accounts formed the basis of the money laundering charges.
The scheme operated like a financial shell game. The operators shifted money rapidly between corporate accounts before withdrawing cash or purchasing luxury assets.
| Scheme Component | Method Used | Financial Mechanism |
|---|---|---|
| Phantom Billing | Fake Patient Profiles | Electronic Claims Submissions |
| Fund Concealment | Shell Bank Accounts | Multi-Tiered Wire Transfers |
| Cash Extraction | Check-Cashing Outlets | Structured Cash Withdrawals |
Key Defendants Named in Docket 17-CR-00183
The indictment named several corporate managers, pharmacy operators, and financial facilitators as primary defendants. These individuals controlled the administrative access needed to bill insurers and authorize transfers.
Federal agents arrested the primary conspirators following a multi-year interagency probe. Prosecutors argued that each participant played a distinct role in executing the fraud.
Defense counsel filed various pre-trial motions challenging the scope of the government evidence. However, judicial rulings upheld the core counts against the key operators.
- Pharmacy License Holders: Provided billing credentials and authorized fraudulent claim submissions.
- Corporate Officers: Managed shell companies used to launder illicit reimbursement funds.
- Financial Middlemen: Facilitated check cashing, shell transfers, and structured cash withdrawals.
Investigation Origins and USAO File 2013R01804
The investigation began under United States Attorney’s Office file number 2013R01804 after automated billing data flagged irregular patterns. Regulators noticed extreme spikes in reimbursement requests for niche medications.
Special agents from the Department of Health and Human Services partnered with federal investigators. They conducted undercover operations, interviewed former staff, and reviewed financial ledgers.
The interagency task force gathered decisive proof of systematic billing irregularities. Their findings prompted the formal criminal filing in federal court.
Investigation Profile: USAO 2013R01804
- Lead Agency: HHS-OIG Special Investigations Unit
- Partner Agencies: FBI, IRS-CI, Local Law Enforcement
- Initial Trigger: Automated Data Mining of Medicare Reimbursements
- Case Type: Federal Criminal InvestigationKey Takeaway: Multiple federal agencies combined data mining and undercover field investigations under file 2013R01804 to build the criminal case for docket 17-CR-00183.
Restitution Funds and Financial Forfeiture Orders
The presiding judge issued comprehensive forfeiture orders to seize assets bought with stolen healthcare funds. The government targeted bank accounts, real estate holdings, and commercial inventory tied to the conspiracy.
Forfeited assets flow into specialized Department of Justice victim compensation funds. These reserves ensure that defrauded insurers and public programs recover financial losses.
Federal restitution orders hold convicted defendants personally liable for millions in restitution debt. The government continues collection activities against all discovered assets.
| Asset Type | Enforcement Action | Destination Fund |
|---|---|---|
| Commercial Bank Accounts | Seizure and Freezing | DOJ Asset Forfeiture Fund |
| Real Estate Holdings | Judicial Foreclosure | Victim Restitution Accounts |
| Physical Luxury Items | Liquidation Auctions | Court-Supervised Restitution Pool |
Impact on Medicare, Medicaid, and Private Insurers
The fraudulent activities charged in docket 17-CR-00183 drained critical financial resources from taxpayer-funded healthcare programs. Medicare Part D and state Medicaid programs paid millions for non-existent medications.
Commercial health insurance companies also suffered substantial financial losses. Fraudulent claims drive up monthly premiums for everyday policyholders across the nation.
Healthcare fraud works like an invisible tax on every working family. When criminals drain public funds, legitimate patients pay higher costs for necessary prescription drugs.
- Medicare Losses: Depleted specialized Part D prescription drug benefit funds.
- Medicaid Impact: Diverted state and federal tax revenues away from low-income care.
- Private Insurers: Incurred inflated claims that increased consumer premium rates.
Evidence and Scheme Mechanics Explained
Federal prosecutors compiled extensive financial records, electronic claim data, and witness testimony to prove the scheme. The evidence demonstrated that the defendants billed for medications without valid doctor orders.
The conspirators used stolen patient identification data to generate realistic prescription claims. They then submitted these claims electronically to commercial clearinghouses for immediate payment.
Witnesses confirmed that physical pharmacy locations never maintained the drug inventory required for these billings. The government introduced shipping manifests to expose the massive inventory discrepancies.
Evidence Checklist: Docket 17-CR-00183
- Electronic Data Interchange (EDI) Claim Logs
- Wholesaler Purchase Invoices vs. Dispensed Quantities
- Bank Account Wire Transfer Records
- Witness Statements from Former Pharmacy EmployeesKey Takeaway: The fraudulent scheme drained millions from Medicare, Medicaid, and private insurers using fake prescription claims and shell company laundering networks.
Trial Proceedings, Plea Agreements, and Sentencing
The legal proceedings for docket 17-CR-00183 spanned multiple years of complex motion practice and plea discussions. Several co-defendants chose to plead guilty rather than face trial before a jury.
Defendants who entered guilty pleas signed formal agreements admitting their roles in the conspiracy. These agreements required full cooperation with government asset recovery efforts.
The court sentenced convicted individuals to substantial terms of federal imprisonment. Sentences also included mandatory supervision periods and joint financial restitution liabilities.
| Legal Stage | Procedural Event | Primary Outcome |
|---|---|---|
| Arraignment | Initial Plea Entry | Formal Presentation of Indictment |
| Plea Negotiations | Rule 11 Agreements | Signed Admissions and Cooperation Deals |
| Sentencing | Final Judgment Entry | Incarceration Terms and Restitution Orders |
Victim Eligibility for Court-Ordered Restitution
Parties eligible for restitution include government healthcare agencies and private insurers that paid fraudulent claims. Eligibility criteria follow the Mandatory Victims Restitution Act guidelines.
Individual patients whose medical identities were stolen qualify for formal victim notification services. However, monetary restitution primarily repays the entities that suffered direct financial losses.
The Department of Justice Victim Witness Assistance Program notifies all identified victims about court hearings. Eligible parties must submit documented proof of loss to the court clerk.
- Direct Financial Victims: Healthcare plans and insurers that processed false claims.
- Government Entities: Centers for Medicare & Medicaid Services and state agencies.
- Impacted Consumers: Individuals whose stolen credentials were used in the scheme.
How to File a Claim for Fraud Victim Compensation
Victims seeking compensation must file a formal victim impact statement and proof of claim with the court. The submission must include itemized records showing every fraudulent payment made to the defendants.
Federal victim-witness coordinators assist eligible entities throughout the formal filing process. Claimants must submit their paperwork before established distribution deadlines.
Once the court approves the claim schedule, the financial litigation unit releases available funds. Payouts are distributed on a pro-rata basis among verified victims.
Filing Steps for Restitution Claimants
1. Obtain official loss verification records from your claims database.
2. Contact the EDNY Victim Witness Assistance Unit.
3. Complete the standard DOJ Declaration of Loss Form.
4. Submit the completed package to the Brooklyn federal court clerk.Key Takeaway: Convicted operators faced prison sentences and mandatory restitution orders, allowing verified insurers and public programs to recover lost funds through the court.
Status of Court Docket 17-CR-00183 in 2026
Court docket 17-cr-00183 in 2026 focuses on post-judgment enforcement, asset recovery, and restitution distributions. The primary criminal trials and sentencing phases are completed.
Federal prosecutors and court-appointed collection officers continue pursuing hidden or offshore assets. Recovered funds are distributed periodically to approved institutional victims.
The federal docket remains open for compliance monitoring, probation reviews, and ongoing financial accounting. Public records confirm active collection efforts against all judgment debtors.
| 2026 Status Area | Current Standing | Next Scheduled Milestone |
|---|---|---|
| Criminal Sentences | Active Service / Supervision | Ongoing Term Completions |
| Asset Collection | Multi-Agency Enforcement | Ongoing Quarterly Liquidations |
| Restitution Account | Open for Disbursements | Scheduled Semi-Annual Payouts |
How to Access Public Records for Case 2013R01804
Members of the public can access official records for docket 17-cr-00183 through the federal PACER portal. Searching the docket number in the Eastern District of New York displays the full register of actions.
You can inspect unsealed motions, judicial opinions, and sentencing orders from any computer. The system provides downloadable digital copies of all major case filings.
For historical investigation summaries, researchers can submit Freedom of Information Act requests to the Department of Justice. Referencing USAO tracking number 2013R01804 speeds up the document search process.
- PACER System: Search docket number 1:17-cr-00183 in the EDNY court database.
- FOIA Requests: Submit written requests to the DOJ citing tracking file 2013R01804.
- Courthouse Visits: Review public record terminals at the Brooklyn federal courthouse.
Legal Precedents and Regulatory Impact on Pharmacies
This federal prosecution established important legal precedents for holding pharmacy management liable for third-party billing fraud. Federal courts clarified that corporate owners cannot claim ignorance of fraudulent claims.
The case prompted stricter compliance rules across the retail and specialty pharmacy sectors. Regulators now require enhanced identity verification before dispensing specialty medications.
Healthcare payers implemented advanced machine learning algorithms to catch similar billing spikes early. These new oversight measures prevent large-scale fraud before payments leave the clearinghouse.
Regulatory Changes Resulting From Enforcement
- Mandatory real-time electronic prescription verification protocols.
- Stricter licensing reviews for high-volume specialty pharmacies.
- Expanded audit powers for Medicare Part D billing administrators.Key Takeaway: As of 2026, the case is in its post-judgment enforcement phase, driving ongoing financial recovery and setting strict regulatory standards for pharmacies.
Steps to Protect Yourself From Healthcare Fraud Schemes
Consumers must protect their personal health insurance credentials just like their social security numbers. Never share your medical insurance ID with unfamiliar marketing representatives or telephone callers.
Review your Explanation of Benefits statements from your insurer every single month. Look closely for medications, doctor visits, or medical equipment that you never received.
Report any suspicious pharmacy billings to your insurance carrier and federal regulators immediately. Quick reporting stops criminal billing networks before they cause widespread financial harm.
- Check Your Statements: Compare every Explanation of Benefits entry with your actual medical visits.
- Guard Your Cards: Never share healthcare policy numbers with unauthorized solicitors.
- Report Irregularities: Contact the HHS-OIG hotline immediately if you spot phantom prescriptions.
Frequently Asked Questions
What is the difference between case 2013R01804 and docket 17-CR-00183?
Case 2013R01804 is the internal tracking file used by the United States Attorney’s Office.
Docket 17-CR-00183 is the formal criminal case number assigned by the federal court in Brooklyn.
Both reference the same federal healthcare fraud prosecution.
Who are the primary victims in this federal prosecution?
The primary victims are taxpayer-funded healthcare programs like Medicare and Medicaid along with commercial insurers.
These organizations paid millions of dollars for fraudulent prescription drug claims.
Patients whose stolen identities were used to bill fake claims are also recognized victims.
How can victims claim restitution from seized assets?
Eligible entities must file a formal proof of claim and loss verification with the EDNY court clerk.
The Department of Justice Victim Witness Assistance Program provides the required documentation forms.
Approved claims receive pro-rata distributions as seized assets are liquidated.
Which federal court manages this criminal action?
The United States District Court for the Eastern District of New York manages all proceedings.
The physical courthouse is located in downtown Brooklyn, New York.
All official docket entries are stored in the court’s electronic records database.
What is the current status of the proceedings in 2026?
The criminal convictions and initial sentencing proceedings are completed.
The court remains focused on asset recovery, forfeiture liquidation, and restitution distributions in 2026.
Judicial officers continue tracking financial collections from convicted judgment debtors.
Consumers and affected organizations should continue monitoring official court filings for restitution updates. Checking your healthcare statements and reporting billing errors protects the entire healthcare system from criminal exploitation.
Stay informed by checking public docket records or contacting federal victim assistance coordinators. Protecting your personal health data remains your strongest defense against modern medical fraud.
