Three people have been indicted in connection with a prescription fraud scheme that allegedly spanned multiple states and targeted the Medicaid program. Ciera Washington, 35, and Raven White, 35, both of the Bronx, New York, along with Bryan Otero, 36, of Wood-Ridge, New Jersey, were arrested following an indictment charging them with healthcare fraud, conspiracy to commit healthcare fraud, and aggravated identity theft.
According to the indictment, from April 2023 through October 2024, White and Otero supplied Washington with personal information—including names, dates of birth, and Medicaid identification numbers—of various individuals. Using this data, Washington is accused of submitting fraudulent prescriptions to several pharmacies in different locations including the Northern District of New York. The group allegedly used rideshare drivers to collect medications from these pharmacies. The cost of these medications was largely covered by Medicaid. The indictment further alleges that Washington arranged for the stolen drugs to be delivered to Otero or other buyers who then paid her.
The charges are accusations at this stage; all defendants are presumed innocent unless proven guilty.
Acting United States Attorney John A. Sarcone III stated: “As alleged, these defendants stole identities, submitted fraudulent prescriptions, got Medicaid to pay for those fraudulent prescriptions, and then sold the prescribed drugs. This was an abuse of the system on multiple levels, across several states. Working with our law enforcement partners, we have stopped this pernicious scheme. The perpetrators will now be held fully accountable.”
FBI Special Agent in Charge Craig L. Tremaroli commented: “The alleged fraud in this case was widespread, compromising not just personally identifiable information of our citizens, but also exploiting Medicaid and our healthcare systems. The FBI will continue to work with all our federal law enforcement partners to investigate and bring to justice anyone looking to defraud valuable government programs meant to help those in need in order to line their own pockets.”
Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) said: “The defendants in this case perpetrated multiple avenues of fraud against the Medicaid program by stealing beneficiary information and causing false claims to be submitted for transportation and medications, which were diverted and sold. HHS-OIG will continue to work with our law enforcement partners to ensure the integrity of the federal health care system and hold accountable those engaging in fraud that targets its programs.”
New York State Comptroller Thomas P. DiNapoli added: “Ciera Washington, Raven White and Bryan Otero are alleged to have callously preyed upon vulnerable New Yorkers in a complex scheme to defraud our state’s Medicaid system and illegally peddle drugs. Medicaid fraud undermines a vital program that provides health care to people in need. My thanks to Acting U.S. Attorney Sarcone, the Federal Bureau of Investigation and the Department of Health and Human Services for their partnership in protecting Medicaid’s integrity and bringing these individuals to justice.”
If convicted on healthcare fraud or conspiracy charges, each defendant faces up to 20 years in prison as well as fines up to twice the amount lost through their actions; they could also receive up to three years supervised release after any prison term is served. Aggravated identity theft carries a mandatory two-year sentence consecutive to any other penalty imposed.
The investigation is being conducted by the FBI, HHS-OIG, and the New York State Comptroller’s office; Assistant U.S. Attorney Jonathan S. Reiner is prosecuting.
