Cop, Firefighters Among 9 Charged In 2 Big NJ Drug-Related Busts

Two big drug-related busts were announced in New Jersey on Friday – one of which nabbed a cop and several firefighters, according to authorities.

Seven people with charged with defrauding New Jersey state health benefits programs and other insurers out of more than $50 million by submitting fraudulent claims for medically unnecessary prescriptions, US Attorney Craig Carpenito announced Friday.

They include Thomas Schallus, whom state public salary records identify as a Ventnor police officer. John and Thomas Sher are Margate firefighters, according to nj.com, and Broccoli is a Camden firefighter.

In a separate bust, the New Jersey State Police announced Friday that they arrested Jorge L. Correa, 38, of Linden and Gustavo Barco, 39, of Roselle. and seized, heroin, cocaine, marijuana, and more than $60,000 cash.

The prescripton drug bust involved the indictment of William Hickman, 42, Sara Hickman, 42, Schallus, 42 and Thomas Sher, 46, all of Northfield; Brian Pugh, 41, of Absecon; John Sher, 37, of Margate and Broccoli, 47, of West Deptford.

They were all charged with conspiracy to commit health care fraud and wire fraud and with individual acts of health care fraud and wire fraud. William and Sara Hickman and Brian Pugh also were charged with conspiracy to commit money laundering and individual acts of money laundering, according to a release from Carpenito's office.

The defendants were expected to appear Friday afternoon before US Magistrate Judge Ann Marie Donio in Camden federal court. The case is assigned to US District Judge Robert B. Kugler in Camden.

According to the indictment:

From July 2014 through April 2016, the conspirators recruited individuals in New Jersey to obtain "very expensive and medically unnecessary" medications from a Louisiana pharmacy, identified in the indictment as the “Compounding Pharmacy,” according to the release.

The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply, according to the release.

The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers and state troopers, had insurance coverage for these particular compound medications, as did some other insurance plans, according to the release.

An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, according to the release.

They also provided services to the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the state of New Jersey for the amounts paid, according to the release.

The conspirators recruited public employees covered by the "Pharmacy Benefits Administrator" to fraudulently obtain medications without any evaluation or determination by a medical professional that the medications were medically necessary, according to the release.

The defendants paid individuals to agree to receive prescription medications. The defendants completed prescriptions for these individuals and selected the most expensive medications with the highest number of refills to obtain the highest possible insurance reimbursement, according to the release.

The conspirators would have prescriptions signed by a doctor who did not examine the patients, according to the release.

The State Police bust culminated a two-week investigation that determined that Correa and Barco were selling significant quantities of cocaine and heroin in the Roselle and Linden area, police said.

On Tuesday, March 12, detectives from the New Jersey State Police Crime Suppression North Unit, T.E.A.M.S. Unit, Gangs and Organized Crime North Unit, Trafficking North Unit, and K-9 Unit, arrested Correa and Barco at their residences without incident, police said.

As a result of the investigation detectives seized 823 grams of cocaine, 151 grams of heroin, 3 grams of THC oil, $60,871 cash, and a 2013 Nissan Altima. The drugs carry a value of $44,300, police said.

Correa was charged with possession with intent to distribute CDS, possession with intent to distribute within 1,000 feet of a school zone, possession with intent to distribute within 500 feet of a park, and conspiracy to distribute CDS, police said.

Barco was charged with possession with intent to distribute CDS, possession of CDS near a school zone, and conspiracy to distribute CDS.

Correa and Barco were lodged at the Union County Jail pending a detention hearing. This case is being prosecuted by the Union County Prosecutor’s Office, police said