Michael Pilate, 43, formerly a guidance counselor in the Pleasantville public school district, was sentenced on December 15, 2021, to 18 months in prison for his involvement in a multimillion-dollar health care fraud conspiracy targeting New Jersey’s state health benefits programs.

Scheme Overview:

• Recruitment and Execution: From January 2015 through April 2016, Pilate 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 included pain, scar, antifungal, and libido creams, as well as vitamin combinations, with reimbursements reaching up to thousands of dollars for a one-month supply. ​
• Financial Impact: The fraudulent activities led to insurers, including New Jersey’s state health benefits programs, paying over $50 million for these unnecessary prescriptions. Pilate personally received approximately $392,684.20 in proceeds from the scheme. ​

Legal Proceedings:

• Sentencing Details: In addition to his prison sentence, Pilate was ordered to forfeit $392,684.20 in criminal proceeds and pay restitution of at least $3,493,170.18. He faced a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

This case highlights the extensive nature of prescription fraud schemes and underscores the commitment of law enforcement agencies to address such fraudulent activities within health care programs.​

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