An Ex-North Brunswick Police Department Police Officer Admitted Compounded Prescription Drug Conspiracy Charges.

An Ex-North Brunswick Police Department Police Officer Admitted Compounded Prescription Drug Conspiracy Charges.

Newark, New Jersey – An ex-North Brunswick police department police officer on 8th March 2021 pleaded guilty to his participation in a multimillion-dollar conspiracy that stole state health benefits programs via the submission of compounded medications prescriptions that lacked medical necessity, announced Rachael A. Honig, Acting U.S. Attorney.

Daniel Passafiume, from Monroe, New Jersey, age 45, pled guilty through videoconference before Michael A. Shipp, U.S. District Judge, to an indictment charging him with plotting to perpetrate health care fraud.

Pursuant to documents filed in this matter and attestations made in court:

From Jan. 2014 to Nov. 2016, Passafiume and a co-schemer, identified in the indictment as CC-1, promoted certain compounded drugs prescriptions, like vitamins and pain creams, to recipients of New Jersey state insurance programs like the SHBP (State Health Benefits Program). These insurance programs reimbursed thousands of U.S. dollars for compounded drugs, which are specialty drugs mixed by a pharmacist to attain the specific medical requirements of a specific patient. Though compounded drugs are not permitted by the FDA (Food and Drug Administration), they are accurately prescribed after a doctor establishes that an FDA-accepted drug does not attain the health necessity of a specific patient because, for instance, the patient is sensitive to a dye or another ingredient or needs the drug in a different formula.

Passafiume and his co-schemer had arrangements with pharmacies to amass large commission reimbursements for every prescription they got for the pharmacy. Passafiume and his co-schemer found persons with these insurance programs and linked them with physicians who were willing to rubber-stamp prescriptions without a checkup or a resolve that the persons required the compounded drugs. Those enrolled to get medications included workers of a New Jersey police department, kin of these workers, and Passafiume’s own kin. Occasionally, Passafiume offered recipients with checks, cash, and gift cards for consenting to get these prescriptions.

The scheme charge provides for a maximum possible imprisonment term of ten years and a fine of 250,000 U.S. dollar fine, or double the proceeds or loss from the crime, whichever is greater. As per his plea deal, Passafiume was directed to forfeit 284,659 U.S. dollars in criminal returns and reimburse restitution of 3.27 million U.S. dollars. Passafiume is set to be sentenced on 12th July 2021. 

Acting United States Attorney Racheal Honig thanked special agents of the FBI, under the leadership of Special Agent-in-Charge George Crouch Jr. in Newark, for the remarkable investigation resulting in this guilty plea.

The Special Prosecutions Division Senior Trial Counsel Leslie Faye Schwartz and the Newark Health Care Fraud Unit in Newark U.S. Assistant Attorney Osmar J. Benvenuto handled this matter’s prosecution on the Federal government’s behalf.

Breaching the False Claim Act, the Controlled Substance Statute, and the Anti-Kickback Statute is severely punished by the law. Besides, conspiracy to commit health care fraud like deceiving taxpayer-funded health care projects, for instance, Medicare, TRICARE, or Medicaid programs, is a serious offense. Anyone who performs these crimes breaks the law and is severely fined or disciplined if found legally responsible for the allegations. When indicted for these crimes, one should look for the perfect legal assistance or representation to defend and pursue your rights. One can hire our extremely capable team of the best defense and criminal attorneys if in need of extremely remarkable legal assistance and representation, which will win one desirable result for an issue. Health Care Fraud Group consists of a qualified team of lawyers with marvelous skills in tackling Health Care Fraud-associated matters linked to the Federal Health Care System; they are extremely informed about civil and federal cases. The attorneys are quite famous throughout the nation due to their outstanding and notable work and proficiency when handling health care fraud investigations and matters. Our attorneys are fully fitted out with earlier knowledge of every phase of Health Care fraud protection, medical, and legal matters.

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