Corey Sutor, Health Care Fraud Conspiracy, New Jersey 2023

Camden, N.J. – In a brazen scheme to dupe New Jersey state health benefits programs, Corey Sutor, a 42-year-old former Ventnor City firefighter, has been sentenced to 12 months and one day in prison for his role in a massive health care fraud conspiracy.

The scheme, which lasted from May 2015 through February 2016, involved Sutor and his cohorts convincing individuals in New Jersey to obtain expensive and medically unnecessary compounded medications. These medications, which included pain, scar, and antifungal creams, as well as vitamin combinations, were reimbursed for thousands of dollars for a one-month supply.

According to court documents, Sutor’s company, which he co-owned, would receive a percentage of the amounts paid to compounding pharmacies for prescriptions secured by Sutor and his conspirators. Sutor would often recruit public employees, offering them hundreds of dollars per month, and persuade them to agree to obtain prescription compounded medications without any physical examination by a medical professional.

Sutor’s scheme caused New Jersey to pay more than $2 million in fraudulent claims for compounded medications for public employees. He personally received $150,398 in gross proceeds for his role in the scheme.

U.S. District Judge Robert B. Kugler imposed the sentence on November 13, 2023, in Camden federal court. In addition to the prison term, Judge Kugler also sentenced Sutor to two years of supervised release. As part of his plea agreement, Sutor must forfeit his criminal proceeds and pay restitution of at least $2.09 million.

Attorney for the United States Vikas Khanna credited special agents of the FBI’s Atlantic City Resident Agency, IRS – Criminal Investigation, and the U.S. Department of Labor, Office of Inspector General, New York Region, with the investigation leading to the sentencing.

The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Daniel Friedman of the U.S. Attorney’s Office in Camden.

The case serves as a stark reminder of the devastating consequences of health care fraud, which can have far-reaching effects on individuals, communities, and the overall healthcare system.

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