Operator Of Cropsey Medical Care Pleads Guilty To Medicare Fraud Scheme

A Philadelphia man pleaded guilty to his connection in running a $13 million Medicare/Medicaid scam out of the Cropsey Medical Care clinic (1706 Cropsey Avenue). According to a Department of Justice (DOJ) press release, Leonid Zalkind faces up to 20 years in prison and a $500,000 fine for his illegal activities.

We first reported on the bust in October of 2012 when Medicaid investigators were spotted outside the clinic. Zalkind, 36, pleaded guilty to one count of conspiracy to commit money laundering. The DOJ press release described the Zalkind’s operation and the extent of his crimes:

According to court documents, from 2010 to 2012, Zalkind operated numerous shell companies and bank accounts through which he laundered the proceeds of health care fraud from the Brooklyn clinic Cropsey Medical Care PLLC (“Cropsey Medical”). Zalkind conspired with others to accept checks from Cropsey Medical, which were made payable to various shell companies Zalkind controlled. These checks did not represent payment for any legitimate service at or for Cropsey Medical, but rather were written to launder Cropsey Medical’s fraudulently obtained health care proceeds. Zalkind admitted at the plea proceeding that he deposited such checks into bank accounts he controlled, intending these transactions to hide and disguise the fact that these funds were proceeds of a crime. He admitted that he knew these funds were proceeds of illegal activity.

The proceeds of checks Zalkind negotiated and cashed were given to the owners and operators of Cropsey Medical, at which point they were used to pay illegal cash kickbacks to Cropsey Medical’s purported patients. According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.

Eight other individuals, including the owners and operators of Cropsey Medical clinics, a doctor and other people who paid and received kickbacks to provide transportation and referrals for patients to the clinic are also awaiting trial.

Correction (December 4, 2014): In a previous version of this article, the photo we used mistakenly identified a chiropractor’s office on Bay 16th Street as the location of Cropsey Medical Care on 1706 Cropsey Avenue. We sincerely regret the mistake and have amended to the photo to reflect this correction.