Ex-Atlantic City firefighter gets probation in multimillion-dollar heath benefits fraud

A former Atlantic City firefighter was sentenced to probation this week for his part in the prescription-fraud scheme that bilked health benefits out of millions.

Mike Pepper was a 10-year veteran of the city's Fire Department when in 2017, he became the first public employee to plead guilty in a far-reaching scheme that had those with health benefits prescribed creams they did not need given by doctors who did not see them.

The Northfield resident had resigned from his position two weeks before pleading Aug. 18, 2017.

Pepper received $113,627.54 for his role in the scheme, according to the U.S. Attorney's Office.

He must repay that plus restitution of $719,481.65, the cost to insurance.

Pepper will be on probation for three years.

Fire Chief Scott Evans called Pepper a good employee at the time, and said the admission was a shock.

His defense attorney at the time said Pepper "has otherwise been an exemplary person who has served our country, state and community with honor and distinction."

"He has started the process of remediation by pleading guilty, by agreeing to forfeiture, by promising to pay restitution and by taking other positive action," said his then-defense attorney Joe Levin, who is now an Atlantic County judge.

(Kevin C. Shelly contributed to this report.)

PREVIOUS PLEAS

Dr. John Gaffney, 55, of Linwood: Margate doctor must forfeit $25,000. Cost: $24.9 million

Michael Sher, 40, of Northfield: Margate firefighter must forfeit $1.7 million. Cost: tbd at sentencing

Mike Pepper, 45, of Northfield: Atlantic City firefighter must forfeit $113,627.54. Cost: $719,000

Richard Erick McAllister, 42, of Ocean City: Pleasantville High School English teacher must forfeit $456,806.23. Cost: $3.4 million

Shawn Sypherd, 46, of Marmora: Middle Township Middle School social studies teacher must forfeit $354,264.06. Cost: $2.4 million

Michael Pilate, 39, of Williamstown: Pleasantville schools counselor must forfeit $392,684.20. Cost: $3.5 million

Matthew Tedesco, 42, of Linwood: Pharmaceutical representative must forfeit $11.1 million. Cost: $28.7 million

Nicholas Tedesco, 44, of Linwood: local candy retailer must forfeit $782,766.56. Cost: $2 million

Tara LaMonaca, 43, of Linwood: Pharmaceutical representative must forfeit $89,855.13. Cost: $530,527

William Hunter, 43, of Sewell: Salesman must forfeit $245,020.08. Cost: $1.3 million

Michael Neopolitan, 49, of Willow Grove, Pa.: Pharmaceutical representative must forfeit $198,617.14. Cost: $762,519

Judd Holt, 42, of Marlton: Pharmaceutical representative must forfeit $95,574.49. Cost: $769,762

George Gavras, 36, of Moorestown: Pharmaceutical representative must forfeit $204,002.02. Cost: $679,368.53

Steven Urbanski, 37, of Marlton: Pharmaceutical representative must forfeit $113,600. Cost: $250,000

Thomas Hodnett, 41, of Voorhees: Pharmaceutical representative must forfeit $270,000. Cost: $1.5 million

Robert Bessey, 43, of Philadelphia: Pharmaceutical representative must forfeit $485,540.09. Cost: $2.7 million

Richard Zappala, 45, of Northfield: Pharmaceutical representative must forfeit $1.5 million. Cost: $4.3 million

Andrew Gerstel, 39, of Galloway Township: Pharmaceutical representative must forfeit $184,389.05. Cost: $483,946

Timothy Frazier, 42, of Galloway Township: Commercial construction estimator must forfeit $145,425. Cost: $801,119

Robert Madonna, 36, of Florida: Former Margate mortgage consultant must forfeit $179,370. Cost: $2.1 million.

Kristie Abbott Masucci, 36, of Cedar Run: Pharmaceutical representative must forfeit amount to be determined at sentencing. Cost: $1.88 million.

James Wildman, 44, of Marmora: Ocean City schools maintenance worker, must forfeit $657,040. Cost: $4.9 million.

Corey Sutor, 37, of Ventnor: Ventnor firefighter, must forfeit $150,397.79. Cost: $2 million.

Ed Sutor Jr., 36, of Linwood: Ventnor firefighter, must forfeit 335,551.81. Cost. $2.7 million.

Mark Bruno, 45, of Northfield: Pharmaceutical representative, received $68,872. Cost: $524,935

Brian Pugh, 45, of Absecon: running BP Med, must forfeit amount determined at sentencing. Cost $1.47 million.

Thomas Schallus, 45, of Northfield: Ventnor police officer, must forfeit amount determined at sentencing. Cost $477,958.

John Sher, 40, of Margate: Margate firefighter, received $327,897.

Christopher Broccoli, 50, of West Deptford: Received $150,315.