$1.2M settlement reached with NY pharmacist

ALBANY, N.Y. -- New York Attorney General Eric Schneiderman says a $1.2 million settlement has resolved claims that a Brooklyn pharmacist defrauded Medicaid by improperly billing for prescription medications that he purchased on the street from 2004 to 2009.

Under the agreement, Rao Veeramachaneni will close his pharmacies, surrender his pharmacist's license, withdraw from the Medicaid program and not work again in the field.

Schneiderman claimed that Veeramachaneni, owner of 1951 Pharmacy in Brooklyn and Positive Care Pharmacy in the Bronx, bought medications out of his suppliers' vehicles, dispensed them to patients without disclosing that, and received more than $1.2 million from Medicaid.

The state only permits pharmacies to purchase medication from authorized wholesalers.

A call to Veeramachaneni's lawyer was not initially returned.