Former North Brunswick Officer Pleads Guilty To Health Care Fraud

SOUTH BRUNSWICK, NJ — A former North Brunswick police officer admitted his role in a multimillion-dollar scheme that defrauded state health benefits programs, Acting U.S. Attorney Rachael A. Honig announced Monday.

Daniel Passafiume, 45, of Monroe, pleaded guilty by videoconference before US District Judge Michael A. Shipp. He was charged with conspiring to commit health care fraud.

Sentencing is scheduled for July 12.

Honig’s office said the charges carries a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gain or loss from the offense, whichever is greater.

As part of his plea agreement, Passafiume must forfeit $284,659 in criminal proceeds and pay restitution of $3.27 million, the attorney’s office said.

According to documents filed and statements made in court, between January 2014 and November 2016, Passafiume and a conspirator, marketed certain prescription “compounded medications,” to beneficiaries of New Jersey state insurance plans, including the State Health Benefits Program (SHBP).

These insurance plans paid thousands of dollars for compounded medications, which are specialty medications mixed by a pharmacist to meet the specific medical needs.

Passafiume and his conspirator had agreements with pharmacies to collect large commission for each prescription they obtained, Honig said.

They found individuals with insurance plans and connected them with doctors who were willing to sign prescriptions without examination or determination that the person needed compounded medications, Honig said.

Those recruited to obtain prescriptions included employees of a New Jersey police department, family members of these employees, and Passafiume’s own family members, said the acting attorney.

At times, Honig said Passafiume provided beneficiaries with cash, checks, and gift cards for agreeing to obtain these prescriptions.

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