New Jersey Pharmacy Scam Makes Former Sales Rep Pay $3 Million

A former pharmaceutical sales representative will pay nearly $3 million after pleading guilty to a scheme to defraud New Jersey public-employee benefit plans with bogus prescriptions for compounded pharmacy medications.

Peter Frazzano of Morris County, N.J., pleaded guilty Aug. 13 to one count of health-care fraud conspiracy for his role in generating the fake prescriptions. He admitted that he’d worked with another, unnamed sales rep to recruit a doctor to write the prescriptions without ever examining patients or determining whether the products were medically necessary. He and his conspirators received payments every time they caused a compounded medication prescription to ...