NJ Doc & Sales Rep Hit with $2.5M Fraud Indictment

CAMDEN, N.J. – A brazen scheme to bilk New Jersey’s health benefits programs and other insurers out of over $2.5 million has landed a physician and a pharmaceutical sales representative in federal hot water. A 16-count indictment unsealed today accuses the pair of peddling medically unnecessary prescriptions and illegally sharing patient data, according to U.S. Attorney Craig Carpenito.

Keith Ritson, 40, of Bayville, New Jersey, and Frank Alario, M.D., 63, of Delray Beach, Florida, are facing serious charges: conspiracy to commit health care fraud and wire fraud, multiple counts of health care fraud and wire fraud, and a second conspiracy to wrongfully obtain and disclose patients’ individually identifiable health information. Alario is also accused of making false statements in a health care matter, while Ritson is further charged with conspiring to commit money laundering and substantive counts of the same. This isn’t a victimless crime; it’s a direct hit to taxpayers and honest healthcare consumers.

The case is assigned to U.S. District Judge Robert B. Kugler in Camden, with initial appearances scheduled for September 10, 2020, before U.S. Magistrate Judge Ann Marie Donio via videoconference. The indictment details a calculated operation centered around compounded medications – specialty drugs mixed by pharmacists to meet individual patient needs. While legitimate when prescribed correctly, these medications became a vehicle for fraud. The pair allegedly exploited the system, knowing certain compounded prescriptions, including pain creams, scar treatments, and even libido enhancers, would be reimbursed at exorbitant rates – often in the thousands of dollars per month.

The indictment paints a picture of cynical targeting. Ritson and Alario zeroed in on individuals with insurance coverage through the State Health Benefits Program (covering state employees and retirees), the School Employees’ Health Benefits Program (covering educators), and other plans, all managed by a Pharmacy Benefits Administrator. They recruited individuals to receive these unnecessary prescriptions, which Alario signed without *any* medical examination, consultation, or established patient relationship. Alario allegedly lied to Central Rexall Drugs Inc. (the Louisiana pharmacy fulfilling the prescriptions), falsely claiming he’d seen and spoken with the patients. The duo specifically targeted existing patients of Alario’s practices who had the right insurance, prescribing medications not for medical necessity, but for their own financial gain.

The scheme was simple in its audacity. Ritson would identify potential marks, Alario would rubber-stamp the prescriptions, and Central Rexall would fill them, leading to over $2.5 million in fraudulent payments from the Pharmacy Benefits Administrator. The indictment details that Ritson received compensation for his role in the scheme. Furthermore, both men are accused of violating HIPAA regulations by unlawfully obtaining and disclosing sensitive patient health information. This wasn’t just about the money; it was a complete disregard for patient privacy and medical ethics.

Federal prosecutors are clearly sending a message: exploiting the healthcare system for personal profit will be met with aggressive prosecution. With the initial court appearance looming, Ritson and Alario now face the consequences of their alleged actions. The Grimy Times will continue to follow this case as it unfolds, bringing you the unvarnished truth about those who prey on the vulnerable and abuse the public trust. The indictment serves as a stark reminder that even seemingly complex schemes can be unraveled, and those responsible will be held accountable.”

RELATED: Redondo Beach Woman Bilked Medicare Out of $24 Million

RELATED: Emporio Motor Group Owner Khan Pleads Guilty to Wire Fraud