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Doc’s Oxycodone Ring Busted
A Monmouth County, N.J., doctor’s alleged oxycodone distribution ring has been busted, with Dr. Paul DiLorenzo, 60, of Ocean Township, N.J., facing charges of conspiracy to distribute oxycodone, structuring financial transactions, conspiracy to launder money, and eight counts of failing to collect and pay payroll taxes.
According to U.S. Attorney Paul J. Fishman, DiLorenzo allegedly issued prescriptions to conspirators for drugs containing oxycodone outside the usual course of medical practice and not for any legitimate medical purpose. He charged purported patients $500 in cash for the first visit, $300 in cash for each successive visit, and an additional $150 in cash for urine tests.
Dilorenzo employed three conspirators to act as ‘staff’ at his office, despite the fact that none of them had any medical training. He provided one of his conspirators with blank prescription pads and stamps in order to generate oxycodone prescriptions for purported patients. Dilorenzo would allegedly sign the prescriptions, often without any medical examination or only a cursory examination.
The oxycodone, a Schedule II controlled substance, has a high potential for abuse and can lead to severe psychological or physical dependence. Dilorenzo’s conspirators would obtain oxycodone pills at pharmacies and then distribute the pills. Dilorenzo allegedly agreed to split the proceeds with some of his conspirators, but never reported or paid any employment taxes.
Dilorenzo structured his share of the proceeds, depositing $1,090,939 in cash into various accounts via more than 150 separate transactions. All but one of the deposits was for an amount less than $10,000, which is the amount that requires the filing of a Currency Transaction Report (CTR). The one deposit for more than $10,000 – a $10,044 cash deposit – was accompanied by a deposit slip in the amount of $9,544.
The potential penalties for the charges against Dilorenzo include up to 20 years in prison and a $1 million fine for the conspiracy to distribute oxycodone charge, up to 10 years in prison and a $500,000 fine for the structuring count, and up to 20 years in prison and a $500,000 fine for the conspiracy to launder money count. The tax counts each carry a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, IRS-Criminal Investigation, and the Drug Enforcement Administration with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton and Tino Lisella, trial attorney with the U.S. Department of Justice, Tax Division.
The charge and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Key Facts
- State: New Jersey
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime|White Collar Crime
- Source: DOJ Press Release â†â€â€
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