A Northfield man admitted Tuesday to leading a far-reaching scheme that bilked millions from public health benefits.
William Hickman, 44, pleaded guilty via video conference in Camden Federal Court to conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to commit money laundering.
The scheme took advantage of taxpayer-funded health benefits by enlisting doctors, teachers, firefighters, police and pharmaceutical representatives to get expensive — and unnecessary — compound prescriptions that earned the group millions.
Hickman admitted to setting up his company, Boardwalk Medical LLC, under his wife's name in order to sell medical equipment that he could not legally do, as a then-pharmaceutical representative.
“This defendant made millions of dollars by enlisting patients and exploiting their medical insurance plans at the expense of New Jersey taxpayers,” said Acting FBI Special Agent in Charge Douglas Korneski, Newark Division. “The FBI is committed to bringing to justice any profiteer who pursues fraud as an occupation with public monies as their paycheck.”
The company received more than $26.2 million, which Hickman forfeited to the government.
He also agreed to pay restitution of more than $53 million.
“Mr. Hickman, who is a salesman not a doctor, recruited patients to have prescriptions filled, not to better the health of the patients, but rather to financially line his own pockets," said Special Agent in Charge Michael Montanez, of the IRS Criminal Investigation Newark Field Office.
While much of the work was done in the name of Sara Hickman, her husband told the judge that it was he who conducted all business, including signing her name and replying to emails sent to her.
As a result, the plea allows for charges to be dropped against Sarah Hickman once certain criteria are met, including property forfeitures. The family will get to keep its home in exchange for $77,161.
More than two dozen people have pleaded guilty in the case. Only one has been sentenced so far.
Under the agreement, the government will pursue no further criminal charges against Hickman, including for unlawfully obtaining compounded prescriptions.
“Properly prescribed medicines can be a vital part of a patient’s treatment, but they can also be costly,” U.S. Attorney Craig Carpenito said. “This defendant orchestrated an elaborate scheme to submit prescriptions for unnecessary compounded medications on behalf of patients who had never seen a doctor. He did so to steal millions of dollars from medical health benefits systems that were intended to help employees get the treatments they needed and deserved.”
Hickman was charged in March 2019 along with Brian Pugh, Thomas Schallus, John Sher, Thomas Sher, and Christopher Broccoli.
A trial for those defendants is set for Sept. 21.
Hickman is scheduled to be sentenced Nov. 6.
Dr. John Gaffney, 55, of Linwood: Margate doctor must forfeit $25,000. Cost: $24.9 million
Mike Pepper, 45, of Northfield: Atlantic City firefighter must forfeit $113,627.54. Cost: $719,000
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
Judd Holt, 42, of Marlton: Pharmaceutical representative must forfeit $95,574.49. Cost: $769,762
Steven Urbanski, 37, of Marlton: Pharmaceutical representative must forfeit $113,600. Cost: $250,000
Corey Sutor, 37, of Ventnor: Ventnor firefighter, must forfeit $150,397.79. Cost: $2 million.
Mark Bruno, 45, of Northfield: Pharmaceutical representative, received $68,872. Cost: $524,935
