$35M Scheme At Passaic Co. Pharmacy Results In Guilty Plea: Feds

CLIFTON, NJ — A man involved with a Passaic County pharmacy admitted Tuesday to his role in a $35 million kickback scheme. Anderson Triggs pleaded guilty to one count of conspiracy to violate the Anti-Kickback Statute — a federal charge.

From 2014 through 2016, Triggs and his conspirators ran a kickback scheme out of Main Avenue Pharmacy in Clifton, according to court documents. The scheme revolved around compounded drugs such as scar creams, pain creams and vitamins. Physicians prescribe compounded drugs when an FDA-approved drug doesn't meet the health needs of a particular patient.

Conspirators at Main Avenue Pharmacy identified compounded drugs that would yield exorbitant reimbursements from health insurers, including both federal and commercial payers. Main Avenue Pharmacy received more than $34 million in reimbursements from health care benefit programs, approximately $8 million of which was paid by federal payers, authorities said.

Triggs started as a consultant to the pharmacy and later became a board member of its corporate parent. A federal grand jury indicted four others in July for the $35 million kickback scheme: Chief Financial Officer Jeffrey Andrews, National Sales Manager Chad Beene, Director of Business Development Adam Brosius and President Robert Schneiderman.

The physicians who signed prescriptions for compounded medications that were filled at Main Avenue frequently had never even spoken to the patients or examined them, according to court documents. Once the prescriptions were signed by a doctor, they would get returned to the marketing company, which would transmit the prescription to Main Avenue Pharmacy, authorities said. Then the pharmacy would fill them and submit claims to health care benefits programs for reimbursement, according to officials.

Triggs earned more than $900,000 through the course of the scheme. The charge of conspiracy to violate the Anti-Kickback Statute carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense — whichever is greatest.

His sentencing is set for June 21.

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