Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Seven in New Jersey Charged in $50M Custom Medication Scam (2)

March 15, 2019, 6:10 PMUpdated: March 15, 2019, 7:34 PM

A federal grand jury indictment charged seven people with running a $50 million health-care fraud scheme to bill New Jersey public-employee health plans for bogus prescriptions for custom-made medications.

The indictment, unsealed March 15 in the U.S. District Court for the District of New Jersey, is the latest result of a continuing investigation into scams that recruited police officers, firefighters, teachers, and other state health-plan beneficiaries to generate fraudulent sales of the expensive drugs.

The defendants allegedly ran a scheme from July 2014 through April 2016 to take advantage of the employee benefit plans’ coverage of custom, or “compounded,” ...