Ex-Pharma Sales Rep In Essex County Indicted For Fraud: Feds

ESSEX COUNTY, NJ — A former pharmaceutical sales representative and town council candidate from Essex County was indicted on conspiracy charges as part of an alleged “prescription drug scheme,” federal prosecutors announced Friday.

Carmine A. Mattia Jr. 60, of Cedar Grove, was indicted for one count of conspiracy to commit health care fraud and three counts of health care fraud. He will have his initial court appearance “on a date to be determined,” the U.S. Attorney’s Office said.

Mattia unsuccessfully ran for a seat on the Belleville Township Council in 2020’s nonpartisan municipal election. Read More: Belleville 2020 Election: Final Town Council Results

Prosecutors released the following allegations on Friday:

“Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription. The scheme centered on Mattia’s work as a sales representative for a marketing company and various compounding pharmacies, for which he sold compounded medications, including pain creams, scar creams, wound creams, and metabolic supplements/vitamins. Mattia was also a full-time employee of the telecommunications company and was a union representative for the company’s employees.”

Federal prosecutors continued:

“Between April 2016 and July 2016, Mattia participated in a conspiracy to submit fraudulent prescriptions for compounded medications to the telecommunications company’s health care plan. The compounding pharmacies paid Mattia a commission in exchange for each prescription for compounded medication Mattia caused to be billed to the company’s health care plan. To fraudulently increase his profits as a sales representative, Mattia recruited Individual-1 to receive medically unnecessary compounded medications. Mattia paid Individual-1 to induce Individual-1 to receive these medications. Mattia also secured the signature of a New Jersey doctor, Robert Agresti, on prescription forms for Individual-1. Agresti and Individual-1 did not have a doctor/patient relationship, Agresti did not determine if Individual-1 needed the compounded medications selected, and he did not examine Individual-1.”

Agresti pleaded guilty on June 26, 2018 to conspiracy to commit health care fraud and is awaiting sentencing, prosecutors said.

Mattia’s alleged participation in the scheme caused a loss to the telecommunications company’s health care plan of approximately $100,000, according to prosecutors.

The conspiracy charge and substantive health care fraud charges each carry a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest, prosecutors said.

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