HARRISBURG, PA — U.S. District Court Judge Sylvia H. Rambo sentenced Sergey Duman, age 46, of Las Vegas, Nevada, on Tuesday to 27 months imprisonment for wire fraud. The Court also ordered a 3-year term of supervised release to follow the term of imprisonment and over $4.8 million in restitution.
According to United States Attorney Gerard M. Karam, Duman previously admitted that he participated in a scheme to defraud private health insurance companies, the United States, and the Commonwealth of Pennsylvania. Duman purchased Cedar Care Pharmacy in Allentown, Pennsylvania, in January 2020. For the next six months, the pharmacy effectively acted as a shell pharmacy for a telemedicine-fraud scheme. During that time, an entity purporting to be a telemedicine company regularly submitted prescriptions to the pharmacy that had been written without the knowledge of the listed patient. The pharmacy then fraudulently submitted private insurance and Medicaid claims for the prescriptions even though the pharmacy never provided the prescribed medications to patients.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania Office of Attorney General. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.