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Date: 08-01-2023

Case Style:

United States of America v. Arthur Kilimnik, Alexander Ferman, Mikhail Ferman, Leonard Kilimnik, and Aleksey (Alex) Orlov, Future Pharmacy, Inc. and JJ Pharmacy, Inc.

Case Number:


Court: United States District Court for the Eastern District of Pennsylvania (Philadelphia County)

Plaintiff's Attorney: United States Attorney’s Office in Philadelphia

Defendant's Attorney:

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Description: Philadelphia, Pennsylvania civil litigation lawyers represented Defendants accused of violation the False Claims Act by billing Medicare for prescription medications that were not actually dispensed. During the period January 1, 2012, to December 31, 2016, these medications included but were not limited to Lidocaine, Lidoderm, Advair Diskus, Nexium, Creon, and Abilify. Future Pharmacy and JJ Pharmacy have also agreed to a five-year federal healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare during the that time. The pharmacies have also surrendered their DEA Certificates of Registration and ceased operations.

As a majority owner of Future Pharmacy and minority owner of JJ Pharmacy, and a pharmacist, the government also contends that Arthur Kilimnik violated the Controlled Substances Act by: (a) failing to maintain complete and accurate records; (b) failing to separate Future Pharmacy’s Schedule II biennial inventory from its Schedule III-V biennial inventory; (c) failing to take appropriate inventory within a two-year period following Future Pharmacy’s last inventory; (d) receiving Schedule II supply from another company, Future Medical, and filling prescriptions generated by Future Medical without proper documentation; and (e) improperly allowing another individual to use Kilimnik’s Controlled Substance Ordering System username and password to order Schedule II controlled substances.

“Pharmacies and pharmacists have a responsibility to serve as gatekeepers of a closed system of prescription drug distribution. That responsibility was allegedly abused for profit here,” said U.S. Attorney Romero.

“Pharmacies are integral partners in patient care, and they are expected to act with integrity,” said Maureen Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “We take allegations of pharmacy fraud seriously, and today’s settlement reflects our commitment to working with our partners to ensure that taxpayer dollars are spent in an appropriate manner – on needed medications, not wasted on fraud and abuse.”

“Pharmacies are entrusted with the proper dispensing and safeguarding of controlled substances in their possession,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The Controlled Substances Act mandates that pharmacists maintain accurate records and inventories to account for these drugs.”

The settled civil claims are allegations only. There has been no determination of civil liability.

The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Drug Enforcement Agency. It was handled by Civil Chief Gregory B. David, Assistant U.S. Attorney Deborah W. Frey, and Auditor George Niedzwicki.

Outcome: Defendant agreed to pay $3.5 million to settle the claims made against them.

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