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# Pharmacist Guilty in Black Market Meds Scheme
- URL: https://www.fdaweb.com/pharmacist-guilty-in-black-market-meds-scheme/
- Published: 2016-08-10T12:00:00.000Z
- Updated: 2026-09-14T21:23:37.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5136465

New York pharmacist **Ira Gross** and his shell company, Chaparral Services, were found guilty in state court of distributing HIV medication illegally obtained from the black market to patients. Gross faces a state prison sentence of up to twenty-five years, according to the [NY State Attorney General’s office](http://www.ag.ny.gov/press-release/ag-schneiderman-announces-trial-conviction-pharmacist-who-illegally-sold-black-market?ref=fdaweb.com). Medicaid and others were illegally billed $274 million through the scheme, with Gross personally receiving $25 million. FDA participated in the investigation.

Gross and three others were arrested in 2012 for distributing HIV prescription medication obtained on the black market through [MOMS pharmacy](http://www.modernhealthcare.com/article/20120821/NEWS/308219963?ref=fdaweb.com), a high-volume, online pharmacy located in Melville with satellite offices in Manhattan, Brooklyn and other states. MOMS, and its parent company Allion Healthcare, then dispensed the illegally obtained medication to Medicaid recipients, and billed the New York State Medicaid program for the tainted medication, the attorney general’s office says.