Richard Zappala, 45, a pharmaceutical sales representative from Northfield, New Jersey, pleaded guilty on September 28, 2017, to conspiring to commit health care fraud. His admission marked the ninth plea in a significant health care fraud case involving fraudulent claims for medically unnecessary prescriptions targeting New Jersey’s state health benefits programs.

Scheme Overview:

• Recruitment and Execution: From January 2015 through April 2016, Zappala and his co-conspirators recruited public employees—including teachers, firefighters, police officers, and state troopers—to obtain expensive, medically unnecessary compounded medications from an out-of-state pharmacy. These medications were prescribed without proper medical evaluations, leading to substantial financial losses. ​
• Financial Impact: The fraudulent activities resulted in insurers, including New Jersey’s state health benefits programs, paying out millions of dollars for these unnecessary prescriptions. Zappala personally received $1,492,918.19 for his role in the scheme.

Legal Proceedings:

• Sentencing: Zappala faced a maximum prison term of 10 years, with sentencing guidelines suggesting a term of 46 to 57 months. Sentencing was scheduled for a later date following his plea.

Zappala’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.