$4.6M Health Insurance Fraud Scheme Lands South Jersey Man In Prison

SEWELL, NJ — A medical sales representative from Sewell will spend 14 years in prison for defrauding public health insurance plans out of more than $4 million, officials announced.

In April, 40-year-old Steven Monaco was convicted of one count of conspiracy to commit health care fraud and wire fraud, eight counts of health care fraud, eight counts of wire fraud and one count of conspiracy to violate the Anti-Kickback Statute and the Travel Act, according to the attorney general's office. Read more: Sewell Man Defrauded Insurance Companies Of Over $4 Million, Jury Says

U.S. District Judge Robert B. Kugler sentenced Monaco to 168 months in prison on Monday, Attorney for the United States Vikas Khanna announced.

Officials said Monaco led two related fraud schemes, which resulted in millions of dollars of loss to public health insurance plans.

Monaco received $36,000 in commissions from a kickback scheme at a medical diagnostic laboratory, officials said. He also received approximately $350,000 and caused health insurance plans to lose more than $4.6 million from the second scheme, the attorney general continued.

Four other defendants, including three medical professionals and a pharmaceutical sales representatives, have pleaded guilty to related charges and await sentencing, Khanna said.