Toms River Doctor Admits Taking $60K In Bribes For Pain Cream Referrals

A Toms River sports medicine doctor admitted he accepted more than $60,000 in bribes to refer pain cream subscriptions to a Lakewood pharmacy and that he falsified health records to ensure they would be paid for by insurance companies, according to the U.S. Attorney’s office.

James Morales, 45, who owned Shore Sports Medicine, a medical practice in Toms River, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden, admitting that from February 2013 through December 2013, he accepted at least $60,000 in cash bribes from Prescriptions R Us (PRU), a compound pharmacy in Lakewood, in exchange for referring pain cream prescriptions, U.S. Attorney Paul J. Fishman said Monday.

Morales was charged earlier in June in a separate case, accused of participating in an illegal patient referral scheme that allowed the four individuals to commit health insurance fraud and maximize the payouts they received, according to authorities.

According to documents filed in this case and statements made in court:

Prescriptions R Us was owned and operated by Vladimir Kleyman, 44, of Lakewood. As a compounding pharmacy, PRU prepared medication using different types and dosages of drugs in order to provide more personalized medications for patients. PRU supplied a topical cream for pain treatment that was made from ketamine (a Schedule III non-narcotic), lidocaine, diclofenac and other ingredients.

In addition to admitting he took bribes, Morales admitted that on Dec. 19, 2013, Kleyman told Morales that the quantity of pain cream that Morales had prescribed was too high to get reimbursed by Horizon, a private health insurance plan. Kleyman asked Morales to start omitting quantity information on his prescriptions for the compounded pain cream. Morales admitted that he agreed to omit quantity information on prescriptions for patients enrolled in Horizon in order to help PRU obtain reimbursements.

The conspiracy charge to which Morales pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 5.

Kleyman previously pleaded guilty to conspiring to pay kickbacks in exchange for prescription referrals and committing health care fraud. His sentencing is scheduled for July 7.