Peter Frazzano, Healthcare Fraud, New Jersey 2019

A Morris County man has admitted participating in a conspiracy to commit healthcare fraud, the Grimy Times has learned.

Peter Frazzano, 46, of Randolph, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit healthcare fraud.

According to documents filed in this case and statements made in court, Frazzano admitted that from November 2014 through March 2016 he participated in a conspiracy to defraud health insurance plans, including the N.J. State Health Benefits plan, by knowingly causing the billing of fraudulent claims for medically unnecessary prescription compounded medications, such as scar creams, pain creams, and metabolic supplements.

To ensure that a physician prescribed compounded medications regardless of medical necessity, Frazzano and a conspirator recruited a doctor to sign prescriptions ordering compounded medications without ever examining or interacting with any of the individuals who were to receive the medications.

The count to which Frazzano pleaded guilty is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

As part of his plea agreement, Frazzano must forfeit $270,751 in criminal proceeds and pay restitution of $2,727,292. Sentencing is scheduled for November 19, 2019.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Vikas Khanna, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office in Newark.

Defense counsel is Joseph Shumofsky Esq., Newark.

Mandatory Facts:

Defendant: Peter Frazzano

Criminal Charges: Conspiracy to commit health care fraud

City and State: Randolph, New Jersey

Date: 2019 (sentencing scheduled for November 19)

Sentence or Outcome: Pleaded guilty, sentencing scheduled for November 19, 2019

Dollar Amounts: $270,751 (criminal proceeds) and $2,727,292 (restitution)

Source: https://www.justice.gov/usao-nj/pr/morris-county-man-admits-role-compounding-pharmacy-conspiracy