Camden, New Jersey- On 12th December 2018, U.S. Attorney Craig Carpenito announced that an Atlantic County-based man pleaded guilty for swindling the state of New Jersey’s health care program over millions of USDs by presenting false allegations for medically unjustifiable authorizations.
Corey Sutor from Egg Harbor Township, New Jersey, age 37, veteran firefighter admitted guilt in front of U.S. District Judge in Camden federal Court Robert B. Kugler to an allegation of conspiring to participate in a health care fraud scheme.
As per the affidavit recorded in court for this case:
Compounded drugs are expected to be specialty drugs blended by a chemist to achieve the specific medical necessity of a specific patient. Although compounded medications are not authorized by the FDA (Food and Drug Administration), they are correctly authorized when a doctor decides that an FDA-sanctioned drug does not fulfill the health requirements of a given patient, as if the patient is sensitive to a pigment or other additive.
Corey was one of the shareholders of an enterprise created to trade authorized compounded drugs, named as Company 1. From May 2014 to February 2016, Corey and other colleagues from the enterprise convinced persons in New Jersey to get very costly and medically unjustifiable compounded drugs.
The perpetrators discovered that some compound drug authorizations-as well as scar, pain, and antifungal lotions, including vitamin blend-were remunerated for thousands of USDs for a monthly stock. The perpetrators also discovered that the New Jersey State Health Benefits Program, which covered state and local government workers, old-timers and qualified family members, and School Employees’ Benefits Programs, which covered professional local education workers, old-timers, and qualified family members, covered drug authorizations.
Corey and his accomplices signed a contract in which Company 1 would collect a percentage of the total remitted by compounded chemists for authorizations obtained by Corey and his accomplices. Corey and his accomplices then signed up public workers, gave them hundreds of USD monthly, and convinced them to accept the authorization of compounded drugs without any tests by medical experts. Corey would acquire insurance and private data from the public workers and issue this data to his accomplices. Company 1 would then acquire a percentage of the total remitted on these deceitful authorizations, which Corey and his accomplices would share.
Corey and his accomplices made New Jersey to remit over 2 million USD in deceitful allegations for compounded drugs for public workers.
Corey acquired 150398 USD in total proceeds for his participation in the fraud conspiracy. As part of his appeal consensus, Corey was to relinquish these criminal gains and remit a remuneration of 2092791 USD or more.
Corey faced a maximum sentence of ten years in federal prison and a fine of 250000 USD, or two times the total proceeds or loss from these crimes. The sentencing date was set to be on 12th March 2019.
U.S. Attorney Craig Carpenito of applauded the investigation team led by the U.S Department of Labor, Office of Inspector General, New York Region, under supervision from Special Agent in Charge Michael C. MIkulka; special agents of IRS-Criminal Investigation, under supervision from Special Agent in Charge John R. Tafur in Newark, and the special agents of the FBI’s Atlantic City Resident Agency, under supervision from Special Agent in Charge in Newark Gregory W. Ehrie for their help in leading the admission of guilt. He further applauded the Division of Pensions and Financial Transaction in the State Attorneys General’s Office, under the supervision of Attorney General Gurbid S. Grewal and also the Division Chief Eileen Schlindewein Den Bleyker for their help in investigating this case.
The state was Assistant U.S. Attorneys Jacqueline M. Carle and R. David Walk Jr of the U.S Attorney’s Office in Camden.
The defense team was led by Robert Wolfe Esq., from Westmont, New Jersey
A Health Care Fraud Indictment carries severe penalties. This is because the Health Care Fraud is severely punishable under the law. Individuals indicted with Health Care Fraud must seek legal assistance to pursue and safeguard their rights. The Healthcare Fraud Group team consists of the best criminal defense attorneys with extensive expertise and provides the best possible service to attain results. Our team clearly understands the need to prove innocence upon allegations of Health Care Fraud. Contact us today at 888-402-4054 for any legal assistance you may need.