Terry Kim Sentenced 63 Months for $24.4M Pharmacy Fraud, Money Laundering

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Press Release

Queens Pharmacy Owner Sentenced to Over Five Years in Prison for Money Laundering Scheme

Friday, April 24, 2026

Share For Immediate Release Office of Public Affairs A New York man, Taesung “Terry” Kim, 61, of Harrison, New York, was sentenced today to 63 months in prison for conspiring to launder the proceeds of a $24.4 million pharmacy fraud scheme.

“Mr. Kim’s scheme to pad his pockets with $24 million in taxpayer dollars by peddling unnecessary prescription drugs is despicable and dangerous,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “This administration is making clear: we will hold accountable anyone who jeopardizes the health of millions of American adults by stealing from Medicare.”

“Today, Taesung Kim was held accountable for the despicable crime of defrauding Medicare and Medicaid, vital federal health care programs that provide insurance coverage to the elderly and those who cannot afford health insurance,” said U.S. Attorney Joseph Nocella Jr for the Eastern District of New York. “Fraudsters who think the government is an ATM they can blatantly plunder should take notice of the price this defendant will now pay for his greed.”

“Taesung (Terry) Kim attempted to hide years of health care fraud through illicit kickbacks and bribes. Through the hard work of the FBI and the Department of Health and Human Service - Office of the Inspector General, we were able to peel back the layers of deception to uncover this criminal scheme,” said Assistant Director in Charge James C. Barnacle Jr. of the FBI New York Field Office. “The FBI will continue to work with our law enforcement partners to identify and hold accountable individuals defrauding the American people.”

“The defendant deliberately exploited patients and the Medicare program by orchestrating kickback schemes and laundering millions in fraudulent prescription proceeds to fuel his own greed,” said Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Today’s sentence reinforces HHS-OIG’s continued commitment, alongside our law enforcement partners, to dismantling schemes that abuse federal health care programs and ensuring those who perpetrate them are brought to justice.”

According to court documents, the defendant co-owned several retail pharmacies in Brooklyn and Queens, New York. Between 2015 and 2022, Kim’s pharmacies submitted approximately $24.4 million in claims to Medicare for medically unnecessary prescription drugs. Kim, working with others, acquired prescriptions by paying bribes and cash kickbacks to medical providers and purported patients. He and his conspirators gave bribes to medical providers in the form of office rent and staff to induce them to direct prescriptions to the pharmacies, and he paid customers in the form of supermarket gift certificates and cash to induce them to fill prescriptions at their pharmacies. Kim laundered the proceeds of the scheme through various trading companies, which gave the appearance of legitimate business, facilitated the kickbacks and bribes, and distributed profits among the pharmacies’ owners.

In December 2024, Kim pleaded guilty to one count of conspiracy to commit money laundering. In addition to his prison sentence, the Court ordered Kim pay $24.4 million in restitution and to forfeit $6 million in fraud proceeds, including several bank accounts and real properties. On Oct. 16, 2025, Kim’s partner and co-conspirator, Feng “Jeff” Jiang, 43, of Flushing, was sentenced to 15 months’ imprisonment.

HHS-OIG and FBI investigated the case.

Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case, and Assistant U.S. Attorney Tanisha R. Payne for the Eastern District of New York assisted with forfeiture matters.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

Updated April 24, 2026 Topic Health Care Fraud Component National Fraud Enforcement Division Press Release Number: 26-401