Two New Jersey Males Admit Well being Care Fraud Conspiracy Concentrating on State Well being Advantages Applications | USAO-NJ

CAMDEN, N.J. – Two New Jersey males at this time admitted defrauding New Jersey state and native well being advantages packages and different insurers by submitting fraudulent claims for medically pointless prescriptions, Lawyer for the USA Vikas Khanna introduced.

Brian Pugh, 45, of Absecon, New Jersey, and Thomas Schallus, 45, of Northfield, New Jersey, pleaded responsible earlier than U.S. District Choose Robert B. Kugler to at least one depend every of conspiracy to commit well being care fraud.

Based on paperwork filed on this case and statements made in courtroom:

Pugh and Schallus had been a part of a felony conspiracy through which state and native authorities staff had been recruited and compensated to obtain medically pointless compound prescription medicines. Pugh and Schallus brought about the pharmacy advantages administrator to pay roughly $1.47 million and $477,958.00, respectively, for medically pointless compounded prescription medicines for people they recruited into the scheme.

Pugh and Schallus had been beforehand charged alongside others in an indictment with conspiracy to commit well being care fraud and wire fraud and different offenses. Conspiracy chief William Hickman pleaded responsible in June of 2020 to defrauding New Jersey well being advantages packages and different insurers out of greater than $50 million and is awaiting sentencing. Prices stay pending in opposition to co-defendants John Sher, Thomas Sher, and Christopher Broccoli, who’re set to proceed to trial earlier than Choose Kugler in Camden federal courtroom on Aug. 15, 2022. The costs in opposition to these three defendants are merely accusations, and so they stay harmless until and till confirmed responsible.

Pugh and Schallus every face a most penalty of 10 years in jail and a $250,000 wonderful, or twice the gross achieve or loss from the offense. Sentencing for Pugh is scheduled for Nov. 17, 2022, and for Schallus, Nov. 14, 2022.

Lawyer for the USA Khanna credited brokers of the FBI’s Atlantic Metropolis Resident Company, beneath the course of Particular Agent in Cost Jesse Levine in Newark; particular brokers of IRS Workplace of Felony Investigation, beneath the course of Performing Particular Agent in Cost Tammy Tomlins in Newark; and particular brokers of the U.S. Division of Labor Workplace of Inspector Common, New York Area, beneath the course of Particular Agent in Cost Jonathan Mellone, with the investigation resulting in at this time’s responsible pleas.

The federal government is represented by Assistant U.S. Lawyer Christina O. Hud of the Felony Division, Deputy Chief of the Felony Division Desiree Grace, and R. David Stroll Jr., Chief of the Opioid Abuse Prevention & Enforcement Unit.

Protection counsel:
Pugh: Michael A. Baldassare Esq. and Jennifer Mara Esq., Newark
Schallus: John C. Whipple Esq., Moorestown, New Jersey