Atlantic Co. Man Admits Role In Health Care Fraud Scheme: Officials

CAMDEN, NJ — Two New Jersey men, including an Atlantic County man, pleaded guilty on July 28 to 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.

John Sher, 40, of Margate, along with Christopher Broccoli, 50, of West Deptford pleaded guilty before U.S. District Judge Robert B. Kugler to one count each of conspiracy to commit health care fraud, Khanna said.

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

The men caused the pharmacy benefits administrator to pay out millions of dollars for medically unnecessary compound prescription medications for those they recruited into the scheme, Khanna said.

Sher directly received $327,897 from the scheme, Khanna said.

Sher and Broccoli were both charged in March 2019 on an indictment with others with conspiracy to commit health care fraud and wire fraud and other offenses, Khanna said. The scheme's leader, William Hickman, pleaded guilty in June 2020 to defrauding New Jersey health benefits programs and other insurers out of more than $50 million and is awaiting sentencing, Khanna said.

Two others involved, also from Atlantic County, previously pleaded guilty to conspiring to commit health care fraud in the same scheme. Read More: 2 Atlantic Co. Men Admit To Health Care Fraud: Officials

Charges remain pending against co-defendant Thomas Sher, who is set to proceed to trial in Camden federal court on Aug. 15, Khanna said.

John Sher and Broccoli each face a maximum 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, Khanna said.

Sher's sentencing is scheduled for Dec. 5, 2022, Khanna said.

Khanna credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James in Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty pleas.