Absecon Man Sentenced For Health Care Fraud: Feds

ABSECON, NJ — An Absecon man was sentenced to prison for his role in a health care fraud scheme, the U.S. Attorney's Office announced Monday.

Brian Pugh, 45, was sentenced to 37 months for defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna said.

According to documents filed in the case and statements made in court, Pugh was part of a criminal conspiracy where state and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications, officials said.

Pugh and his conspirators defrauded New Jersey health benefits programs and other insurers of more than $50 million, officials said.

He directly caused the pharmacy benefits administrator to pay more than $1.4 million for medically unnecessary compound prescription medications for individuals he recruited into the scheme, and he received more than $430,000 in the conspiracy, according to officials.

In addition to the prison term, Pugh was sentenced to three years of supervised release and ordered restitution of more than $1.4 million and forfeiture of $437,604.