NEWARK, NJ (Essex County) – A Morris County man admitted Tuesday participating in a conspiracy to bill health insurance companies for medically unnecessary compounded prescriptions, according to U.S. Attorney Craig Carpenito.
Peter Frazzano, 46, of Randoph Township pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud, Carpenito said.
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, Carpenito said.
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, Carpenito said.
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.
Frazzano is scheduled to be Sentenced on Nov. 19, 2019.