Joshua Darstek, Health Care Fraud, New Jersey 2020

In a shocking turn of events, Joshua Darstek, a 38-year-old former sales representative for two compounding pharmacies and a marketing company, has admitted to his role in a conspiracy to defraud a New Jersey state health benefits program.

According to documents filed in the case and statements made in court, Darstek, of Freehold, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to a superseding information charging him with conspiracy to commit health care fraud.

The conspiracy, which took place between May 2014 and January 2016, involved recruiting patients, many of whom had prescription drug coverage under the New Jersey School Employee's Health Benefits Program, to submit medically unnecessary prescriptions for compounded drugs to the pharmacies.

Darstek, who was paid based on a percentage of the reimbursement payments received by the compounding pharmacies, caused physicians to write prescriptions for individuals with whom they did not have any interaction, making the prescriptions medically unnecessary.

The conspiracy to commit health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of his plea agreement, Darstek must forfeit $148,500 in criminal proceeds and pay restitution of at least $594,639.

Sentencing is scheduled for March 23. U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today's plea.

The government is represented by Assistant U.S. Attorney Bernard J. Cooney, Acting Chief of the Opioid Abuse Prevention & Enforcement Unit.

Mandatory Facts: Joshua Darstek, a former pharmacy and marketing company sales representative, was charged with conspiracy to commit health care fraud. The crime took place in Newark, New Jersey between May 2014 and January 2016. Darstek is scheduled to be sentenced on March 23 and faces a maximum penalty of 10 years in prison and a $250,000 fine. He must also forfeit $148,500 in criminal proceeds and pay restitution of at least $594,639.

Source: https://www.justice.gov/usao-nj/pr/former-pharmacy-and-marketing-company-sales-representative-admits-role-compounded