Morris County pharmacy operator charged with defrauding Medicare for $10 million

Federal prosecutors charged a Kinnelon woman with health care fraud Friday, alleging that she received $10 million in fraudulent reimbursement payments over a span of seven years.

Aysha Khan, 33, controlled and operated specialty pharmacies in New Jersey, New York, Florida and Texas, U.S. Attorney Philip Sellinger said in a press release. She was indicted on one count of conspiracy to commit health care fraud and four counts of health care fraud.

Prosecutors said Khan's pharmacies processed costly medications that treat diseases like Crohn's, hepatitis C and rheumatoid arthritis. Khan allegedly directed the pharmacies to bill health insurance providers for medications that they didn't actually provide to patients. And while the pharmacies generally provided the initial medications, prosecutors said the they would bill for refills without actually giving them out.

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Beginning in 2015 and continuing until 2022, Khan's pharmacies received $10 million in reimbursement payments from Medicare for prescriptions they never even ordered, prosecutors alleged.

Khan was arrested and was due to appear in Newark federal court Friday. She could face up to 10 years in prison on each count if convicted.