Prominently Featured In:

CNN
Netflix
Newsweek
Business Insider
Time

NY Penal Law § 177.15: Health Care Fraud in the Third Degree

Healthcare fraud is a kind of white collar crime that entails putting in false medical claims in order to get payments from a health plan or health insurance company. Health care fraud commonly takes the form of a doctor, dentist, pharmacist, chiropractor or other medical specialist sending claims to insurance companies for services, items or medications that were not actually given to any patients. Five offenses related to health care fraud exist in the New York criminal code. They are health care fraud in the first, second, third, fourth and fifth degrees. The specific charge that you could be looking at depends on the amount of money you received as a result of the fraud in a single year. You could be charged with health care fraud in the third degree under New York Penal Code § 177.15 if you knowingly submitted falsified health insurance claims and, as a result, you received payments to which you were not entitled. For this charge to be valid, the amount of the payments you received fraudulently must be more than $10,000 but less than $50,000 in a single year.

For Example

Malcolm Ogbeche owned a neighborhood pharmacy. Rumor had it that he sold prescription drugs to people who did not have prescriptions. Based on information they received, police commenced an investigation. On 3 different occasions, undercover police officers went to Ogbeche’s Pharmacy posing as customers. They asked to purchase codeine, Ritalin, and Valium without presenting any prescriptions and had their requests filled. On the basis of these transactions, the police procured and executed a search warrant on Ogbeche’ pharmacy. Investigators discovered that Mr. Ogbeche had submitted bills to a health plan in the names of other people so that he could receive payments for the prescription drugs he dispensed illegally. Mr. Ogbeche was charged with the crime of health care fraud in the third degree. Investigators discovered that he had received a total of $45,000 in payments from a single health plan from the fraudulent submissions.

Offenses That Are Related

Share This Article:
Todd Spodek
ABOUT THE AUTHOR

Todd Spodek

Managing Partner

With decades of experience in high-stakes federal criminal defense, Todd Spodek has built a reputation for aggressive, strategic representation. Featured on Netflix's "Inventing Anna," he has successfully defended clients facing federal charges, white-collar allegations, and complex criminal cases in federal courts nationwide.

Bar Admissions: New York State Bar New Jersey State Bar U.S. District Court, SDNY U.S. District Court, EDNY
View Attorney Profile

Federal Lawyers By The Numbers

36 Cases Handled This Year and counting
15,536+ Total Clients Served since 2005
95% Case Success Rate dismissals & reduced charges
50+ Years Combined Experience in criminal defense

Data as of February 2026

URGENT

Take Control of Your Situation

Our team is standing by to discuss your legal options

Get Advice From An Experienced Criminal Defense Lawyer

All You Have To Do Is Call (212) 300-5196 To Receive Your Free Case Evaluation.