New York’s Antonio Payano, Christy Corvalan, Crystal Medina, David Fernandez accused of defrauding Medicaid, Medicare

Christy Corvalan, 41, Antonio Payano, 34, Crystal Medina, 28, and David Fernandez, 24, are all residents of the Bronx, New York City, New York, United States. They are accused of participating in a years-long scheme to defraud Medicaid, Medicare and private insurance companies out of at least around $20 million.

Medicaid is a U.S. government program that provides health insurance for adults and children with limited income and resources. Medicare primarily provides health insurance for Americans aged 65 and older.

Payano allegedly distributed black-market human immunodeficiency virus (HIV) medications to pharmacies that were owned and operated by Corvalan and others. Corvalan and others allegedly dispensed the medications to patients of their own pharmacies or distributed it to other pharmacies. 

As employees of Corvalan’s pharmacies, Fernandez and Medina allegedly participated in the day-to-day operation of the scheme. As part of the scheme, the three and two others allegedly funded and paid illegal kickbacks to patients to recruit patients to their respective pharmacies. 

Corvalan, Fernandez and Medina allegedly paid patients to sell back their HIV medications to Corvalan’s pharmacies, inducing the patients to forego using the medications they were prescribed. The three suspects and two others allegedly tried to recruit new patients regularly to increase the number of prescription medications for which their pharmacies could fraudulently bill government insurance. 

On March 2, 2023, Corvalan, Fernandez, Medina and two others were arrested and presented in federal court in Manhattan, New York City. Payano remains at large.

On October 20, 2023, the unsealing of superseding indictment charging Corvalan, Payano, Medina, Fernandez and six others was announced. Payano was charged with conspiracy to commit wire fraud and health care fraud and conspiracy to defraud the U.S.

Corvalan was charged with conspiracy to commit wire fraud and health care fraud, conspiracy to commit money laundering, conspiracy to violate the Anti-Kickback Statute and conspiracy to defraud the U.S. Fernandez and Medina were each charged with conspiracy to commit wire fraud and health care fraud, conspiracy to violate the Anti-Kickback Statute and conspiracy to defraud the U.S.