Fraud ring bilked $34M from gov’t, private insurers

The alleged scheme began in 2014 and involved prescription pain and scar creams, migraine medications and vitamins, federal investigators said.

The U.S. Attorney’s Office on Thursday announced the indictment of four area men who allegedly operated a fraud and kickback scheme from a mail-order pharmacy in Passaic County, New Jersey.

A federal grand jury has indicted Jeffrey Andrews, 68, of Bryn Mawr, Chad Beene, 47, of Philadelphia, and Adam Brosius, 55, and Robert Schneiderman, 77, both of Langhorne, the U.S. Attorney’s Office said.

The four are charged with conspiracy to commit health care fraud, health care fraud, conspiracy to violate the federal Anti-Kickback Statute, and violations of the federal Anti-Kickback Statute, said U.S. Attorney Craig Carpenito.

The alleged scheme began in 2014 and involved prescription pain and scar creams, migraine medications and vitamins, federal investigators said. The four men are accused of submitting phony claims to insurance companies to see which prescription products would generate the most money.

One pharmacy received more than $34 million in reimbursements from health care benefit programs, investigators estimated. Approximately $8 million of that total was paid by federal payers, officials said.

The indictment lists as a “co-conspirator” four marketing companies, which are unidentified. The indictment says only that the marketing companies are located in Arizona and Florida.

Conspiracy to commit health care fraud carries a statutory maximum penalty of 10 years in prison and $250,000 in fines, officials said.

Each violation of the federal Anti-Kickback Statute carries a statutory maximum penalty of 10 years in prison and $250,000 fine.

Charges of conspiracy to violate the Anti-Kickback Statue are met with a statutory five years in prison and $250,000 fine.

No court hearings or arraignment dates have been set for the four suspects.