Slow road to justice in multimillion-dollar fraud scheme

Years after pleas in the multimillion-dollar health-care fraud scheme that included doctors, teachers, firefighters and pharmaceutical representatives, many still have not seen the inside of a prison.

While Covid complicated moving the cases along in the legal system, the government also dramatically slow-walked the cases without any public explanation.

Admitted leader William Hickman along with recruiter Brian Pugh were initially charged in March 2019, during a splashy perp parade in front of the FBI’s Northfield office.

Hickman remains free, his sentencing moved repeatedly.

Pugh is currently set to start his three-year Feb. 1, after U.S. District Judge Robert B. Kugler allowed him to go home after sentencing him to 37 months in prison in December.

There are other examples of the lack of urgency.

Dr. John Gaffney, who willy-nilly signed individual compounding prescriptions for "patients" he never saw in return for cash kickbacks, wine and outings, took a plea in September 2017. More than five years later, Gaffney remains free.

Also still not locked up is Hickman’s lieutenant, Matt Tedesco of Linwood, who entered a plea in 2018. He and Hickman were both sales reps for prescription drug companies, allowing them access to doctors and patients.

And the supplier of the compounded prescriptions, Hayley Taff, of Central Rexall in Hammond, La., has likewise not been sentenced. She pleaded guilty in 2020.

The cases have cast a dark lingering pall over the region. Judge Kugler observed from the bench in December that “a generation of community leaders” in the area are now tainted. That’s especially the case in Northfield and Linwood, home to a large contingent of defendants, many of whom knew each other from their children’s schools and sports teams.

The lack of clarity from the Feds has fostered an atmosphere of speculation, gossiping and backbiting in those communities and led to the collapse of several marriages.

The delays have also led locals to speculate more arrests are pending.

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.