NJ Teacher From Nutley Admits To Health Care Fraud: Feds

NUTLEY, NJ — A teacher who lives in Essex County admitted that he conspired to defraud the New Jersey School Employees’ Health Benefits Program (SEHBP) with phony claims for medically unnecessary prescriptions, federal prosecutors announced Wednesday.

Jason Nardachone, 51, of Nutley, pleaded guilty to an indictment charging him with one count of conspiracy to commit health care fraud, according to the U.S. Attorney’s Office.

Prosecutors released the following statement about the case:

“Nardachone participated in a scheme to defraud the SEHBP by knowingly causing the billing of medically unnecessary compounded medications, such as metabolic vitamins, pain creams and scar creams, for himself and three other teachers. From September 2015 through February 2016, Nardachone and others received medically unnecessary compounded medications that cost the SEHBP from $3,300 to $22,800 per medication. Nardachone bribed the three other teachers with monthly payments of $500 in exchange for their agreement to obtain compounded medications they did not need. The scheme resulted in losses to the SEHBP of more than $550,000.”

The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, prosecutors said.

Sentencing is scheduled for Feb. 1, 2022.

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