7 charged in insurance fraud that squeezed $50M from NJ health benefits programs

David Madden
March 15, 2019 - 12:50 pm

Dreamstime

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TRENTON, N.J. (KYW Newsradio) — A federal grand jury has indicted seven people in a $50 million fraud scheme for medically unnecessary prescriptions through insurance programs for New Jersey state employees, school teachers, police and firefighters.

The U.S. attorney for New Jersey contends that for two years, a Margate physician, who has already pleaded guilty in the scheme, wrote fraudulent prescriptions for compound medications. Those compounds prompted large reimbursements from the state’s "Pharmacy Benefits Administrator." 

A Northfield couple, William and Sara Hickman, allegedly ran a company through which the prescriptions were handled by a Louisiana pharmacy that got those reimbursements.

The Hickmans have been charged with getting more than $26 million from the pharmacy and splitting it with five other people who recruited patients who never saw a doctor.

Charges include health care and wire fraud and conspiracy. The 50-count indictment could lead to lengthy prison terms and fines if the defendants are convicted.

All seven defendants were freed on bail of $100,000 each. 

Additionally, the attorney for William Hickman, Samuel Moulthrop, issued the following statement on behalf of his client:

"On behalf of William Hickman, we are seeing these charges for the first time today. Mr. Hickman is innocent and we are eager to contest these charges in a court of law. We are confident that Mr. Hickman will be exonerated after trial."