Two men who admitted to using their state health benefits in a conspiracy to bilk the system out of millions were sentenced to federal prison Tuesday.
Richard Erick McAllister, 45, a former Pleasantville High School English teacher, was sentenced to 37 months in prison.
James Wildman, 46, who worked in maintenance for the Ocean City School District, was given a 46-month term.
Both men who admitted to being recruiters in the endeavor live in Marmora.
In 2015 and 2016, the two persuaded public workers to get expensive, medically unnecessary compounded medications that insurers then reimbursed for thousands of dollars per monthly supply.
McAllister previously admitted to making nearly a half-million dollars and costing the program more than $3.4 million.
James Wildman made more than $650,000, with more than $4.8 million submitted for prescriptions.
Teachers, firefighters, police officers and state troopers were targeted as recruits due to their high-dollar insurance coverage.
Wildman and conspirators working under him recruited public employees covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary, the complaint said.
The pharmacy has been identified as Central Rexall Drugs Inc., out of Louisiana.
Chief Executive Officer Hayley Taff pleaded guilty in August to health care fraud conspiracy, and Central Rexall executives Christopher Kyle Johnston, Trent Brockmeier and Christopher Casseri were indicted on Sept. 16 for conspiracy to commit health care and wire fraud, conspiracy to commit identity theft, and money laundering charges.
In addition to the prison terms, both men were sentenced to three years of supervised release once their terms are completed. McAllister must pay $3.4 million in restitution and had to forfeit $456,806.
Wildman must repay $4.86 million in restitution and forfeit $657,040.
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
