Timothy Frazier, a 42-year-old commercial construction estimator from Galloway, New Jersey, pleaded guilty in December 2017 to conspiring to commit health care fraud. He was the 12th individual to admit involvement in a scheme that defrauded New Jersey state health benefits programs and other insurers of approximately $800,000 through fraudulent claims for medically unnecessary compounded medications.

Scheme Details:

• Recruitment of Public Employees: From January 2015 to April 2016, Frazier recruited public employees—including teachers, firefighters, police officers, and state troopers—to obtain expensive, medically unnecessary compounded medications from an out-of-state pharmacy. ​
• Financial Incentives: In exchange for their participation, recruiters and individuals received financial incentives. Frazier personally received $145,425 from his role in the scheme. ​
• Financial Impact: The Pharmacy Benefits Administrator paid the Compounding Pharmacy over $50 million for these compounded medications mailed to individuals in New Jersey. Frazier’s actions resulted in a loss of at least $801,119 to the health benefits programs.

Legal Proceedings:

• Forfeiture and Restitution: Frazier agreed to forfeit $145,425 in criminal proceeds and was ordered to pay restitution of at least $801,119.
• Sentencing: He faced a maximum prison term of 10 years, with sentencing guidelines suggesting a term of 46 to 57 months. Sentencing was scheduled for February 2018.

Frazier’s guilty plea is part of a broader investigation that has led to multiple convictions, including those of doctors, firefighters, and teachers, highlighting the extensive nature of the fraud scheme.

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