Former Atlantic City Firefighter Sentenced in Health Care Fraud Scheme

Michael Pepper, 45, of Northfield, New Jersey, a former Atlantic City firefighter, was sentenced on April 9, 2023, to three years of probation for his involvement in a prescription fraud scheme that defrauded state health care plans of nearly $50 million. ​

Scheme Overview:

  • Recruitment and Execution: Pepper, under the guidance of pharmaceutical salesman William Hickman, recruited public employees to obtain medically unnecessary compounded medications. These included pain creams, scar creams, antifungal creams, libido creams, and certain vitamin combinations. The prescriptions were filled by a Louisiana-based pharmacy, which paid kickbacks to participants. ​
  • Financial Impact: The scheme led to fraudulent claims totaling $752,000, with Pepper personally receiving $113,668, which he was ordered to forfeit. ​

Legal Proceedings:

  • Sentencing Details: In addition to probation, Pepper was ordered to pay restitution of $719,481. At the time of the charges, he had resigned from the Atlantic City Fire Department, where he had served for a decade with a salary of $101,741. ​

This case highlights the ongoing efforts by authorities to address fraudulent activities within health care programs in New Jersey.​

Please note that legal proceedings are ongoing, and details may evolve as new information emerges.

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