Hewlett, New York — A Long Island businessman is facing criminal charges and a multimillion-dollar civil lawsuit after New York prosecutors accused him of operating a Medicaid fraud scheme that allegedly diverted millions of taxpayer dollars while medically vulnerable infants failed to receive the specialized nutrition prescribed by their doctors.
According to the New York Attorney General’s Office, Nduka Lewis Ekpenyong, 36, allegedly defrauded the state’s Medicaid program of approximately $2.6 million through his medical supply company, Duke Medical, LLC.
Authorities claim the alleged scheme operated for more than two years before investigators shut it down.
Prosecutors Allege Formula Was Swapped for Lower-Cost Products
According to the allegations, physicians prescribed specialized infant formulas for babies with specific medical and nutritional needs.
Investigators claim Duke Medical billed Medicaid for those expensive medical formulas but frequently supplied families with lower-cost over-the-counter PediaSure instead.
In some instances, prosecutors allege that families did not receive any formula at all despite Medicaid being billed for the prescribed products.
Authorities contend the difference in cost between the prescribed formula and the products allegedly provided allowed the defendant to pocket millions of dollars.
Attorney General Letitia James strongly criticized the alleged conduct.
“While Nduka Ekpenyong was buying luxury cars with money he allegedly stole from our state’s Medicaid program, families affected by his fraud were struggling to feed their children.”
“My office has shut down this heartless fraud scheme for good.”
The allegations contained in the criminal complaint have not yet been proven in court.
Luxury Purchases Allegedly Funded by Fraud
Investigators allege the proceeds from the Medicaid scheme financed an extravagant lifestyle.
According to prosecutors, Ekpenyong purchased a $1.6 million mansion in Hewlett, along with several luxury vehicles, including:
- A black Bentley valued at approximately $70,000
- A black Range Rover worth about $67,000
- A Mercedes-Benz reportedly purchased for his live-in girlfriend
Authorities also claim money was spent on expensive upgrades to the home, including an outdoor kitchen, a marble fountain, and a customized basketball court featuring the defendant’s initials.
Prosecutors allege many of these purchases were made using funds fraudulently obtained through Medicaid reimbursements.
Criminal Charges and Civil Lawsuit Filed
The defendant has been charged with grand larceny and healthcare fraud in connection with the alleged scheme. In addition to the criminal case, the Attorney General’s Office has filed a civil lawsuit seeking nearly $7.6 million in damages.
That amount includes repayment of the alleged fraudulent Medicaid claims as well as additional financial penalties permitted under state law.
Court filings allege the fraud occurred between April 2023 and July 2025 through Duke Medical, LLC, which operated from Brooklyn.
Investigation Continues
The criminal case will now move through the court system, where prosecutors must prove the allegations beyond a reasonable doubt.
Authorities have not announced whether additional individuals or businesses could face charges as the investigation continues.
The case highlights ongoing efforts by state officials to combat healthcare fraud and recover taxpayer funds allegedly diverted from programs designed to provide medical care for vulnerable patients.
If convicted, Ekpenyong could face significant criminal penalties in addition to the financial claims outlined in the civil lawsuit.
What are your thoughts on healthcare fraud involving taxpayer-funded programs? Do you believe penalties should be increased for cases involving vulnerable children and public assistance? Share your thoughts respectfully in the comments below.
