Nicholas Tedesco, Health Care Fraud, New Jersey 2023

CAMDEN, N.J. – A local candy company retail director has been sent to prison for defrauding New Jersey state health benefits programs out of over $2 million. Nicholas Tedesco, 49, of Linwood, New Jersey, previously pleaded guilty to an information charging him with conspiracy to commit health care fraud.

Nicholas Tedesco was sentenced to 18 months in prison by U.S. District Judge Robert B. Kugler in Camden federal court. In addition to the prison term, Judge Kugler also sentenced Nicholas Tedesco to three years of supervised release. As part of the plea agreement, Nicholas Tedesco must forfeit $782,767 in criminal proceeds and pay restitution of $2.04 million.

According to court documents, Nicholas Tedesco and others recruited individuals in New Jersey to obtain expensive and medically unnecessary compounded medications from an out-of-state pharmacy, Central Rexall Drugs Inc. in Louisiana. The conspirators knew that certain compound medication prescriptions were reimbursed for thousands of dollars for a one-month supply.

The scheme targeted New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, who had insurance coverage for these particular medications. Nicholas Tedesco recruited and paid several individuals to receive the medically unnecessary medications and to recruit others to receive them.

The scheme was led by Nicholas Tedesco's brother, Matthew Tedesco, who pleaded guilty to his role in the scheme on Aug. 17, 2017. Matthew Tedesco is scheduled to be sentenced on Oct. 26, 2023. Nicholas Tedesco's co-defendant, Christopher Broccoli, pleaded guilty to his role in the scheme on July 28, 2022, and is scheduled to be sentenced on July 26, 2023. Two doctors involved in the scheme, John Gaffney and Brian Sokalsky, also pleaded guilty for their roles in the conspiracy and are scheduled to be sentenced on Oct. 16, 2023, and Aug. 22, 2023, respectively.

The investigation was led by special agents of the FBI's Atlantic City Resident Agency, the IRS – Criminal Investigation, and the U.S. Department of Labor, Office of Inspector General. The government is represented by Senior Trial Counsel Christina O. Hud of the Health Care Fraud Unit and Deputy Criminal Chief R. David Walk Jr. of the Criminal Division.

Nicholas Tedesco's sentence was announced by Attorney for the United States Vikas Khanna. According to Khanna, Nicholas Tedesco's actions resulted in significant financial losses for the state of New Jersey and its taxpayers. Khanna commended the law enforcement agencies involved in the investigation for their tireless efforts in bringing the scheme to light.

Nicholas Tedesco's case highlights the importance of vigilance in preventing healthcare fraud. As the investigation revealed, the scheme was sophisticated and targeted individuals with insurance coverage. The case serves as a reminder that healthcare fraud will not be tolerated and that those who engage in such activities will be held accountable.

Nicholas Tedesco's crime and subsequent sentence serve as a warning to those who would engage in similar activities. The consequences of healthcare fraud can be severe, and those who engage in such activities risk significant financial losses and imprisonment.

Source: https://www.justice.gov/usao-nj/pr/atlantic-county-man-sentenced-18-months-prison-health-care-fraud-conspiracy-targeting