A former sales representative has been convicted in a compound prescription drug scheme that bilked public health benefits programs out of millions.
Matthew Puccio, 40, of Randolph, New Jersey, was convicted of conspiracy to commit healthcare fraud following a seven-day jury trial before U.S. District Judge John Michael Vazquez.
According to documents and evidence presented during the trial, Puccio participated in a scheme that involved submitting fraudulent prescriptions for compound medications to public health benefits programs from November 2014 to March 2016.
Compound medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compound drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient.
Puccio exploited this opportunity by working as a sales representative for several compounding pharmacies. He targeted individuals who had health plans that covered compound medications and convinced them to obtain prescriptions for compound medications, regardless of medical necessity.
Puccio and his conspirators induced two New Jersey-based physicians to sign medically unnecessary prescriptions for beneficiaries that Puccio and others had recruited. The compounding pharmacies would then receive reimbursement from the health plans and paid Puccio a percentage of the reimbursement amount.
Puccio faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, for the charge of conspiracy to commit healthcare fraud. Sentencing is scheduled for November 29, 2022.
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Key Facts
- State: New Jersey
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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