NEWARK — A Morris County man admitted his role in a health benefits conspiracy Wednesday in U.S. District Court, U.S. Attorney Craig Carpenito said.
Peter Frazzano, 46, pleaded guilty before U.S. District Judge John Michael Vazquez after admitting his role in a conspiracy to defraud health insurance plans, including the New Jersey State Health Benefits Plan, by billing for fraudulent claims for medically unnecessary prescription compounded medications, according to a news release from the U.S. Attorney’s Office.
Frazzano and conspirators recruited a doctor to sign prescriptions for costly compounded medications such as scar creams and metabolic supplements “without ever examining or interacting with any of the individuals who were to receive the medications,” according to the release.
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The count to which Frazzano pleaded guilty carries a maximum penalty of 10 years in prison or twice the total gain of the offense. Frazzano will need to forfeit $270,751 in criminal proceeds and pay restitution of $2,722,292.
Frazzano’s sentencing is scheduled for Nov. 19.
His case is similar to a multimillion-dollar scheme in Atlantic County to defraud the state health benefits system, which is still winding its way through federal court in Camden, and has caught in its net local teachers and firefighters, among others.
So far, 24 people have accepted plea agreements in the case since August 2017. Seven more, including alleged ringleaders Sara and William Hickman, of Northfield, and co-conspirators John and Thomas Sher, Brian Pugh, Thomas Schallus and Christopher Broccoli, have pleaded not guilty.