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Compounded Drug Sales Reps, Doctor Admit to $25M Fraud Scheme

Sept. 26, 2017, 4:23 PM

A doctor and two more sales representatives for a compounded drug pharmacy pleaded guilty to charges that they participated in a scheme to generate bogus prescriptions to cheat New Jersey state health benefits programs and other insurers out of $25 million (United States v. Gaffney, D.N.J., 1:17-cr-00388, guilty plea 9/22/17).

The three defendants were the latest to enter guilty pleas in a group of cases charging that a ring coordinated by the sales representatives recruited police officers, firefighters, state troopers, teachers, and other beneficiaries in the state’s public employee benefits programs to submit faked claims for the scheme. ...