Fair Haven woman and business partner admit to their roles in $38M compounding drug scheme
NEWARK−A Fair Haven woman and her North Jersey business partner admitted their roles Monday in a $38 million compounding drug fraud scheme, authorities said.
Lee Nichols, 43, of Fair Haven and Samantha Zaretzky, 42, of Wayne, each pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to one count of conspiracy to commit health care fraud.
The scheme cost health insurance companies tens of millions of dollars while Nichols and Zaretsky made millions, authorities said.
Compounded drugs are tailor-made to meet the particular needs of individual patients for whom ordinary drugs won't work.
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From April 2014 to June 2016, Zaretzky and Nichols used their company, Synergy Medical LLC, to market prescription-based compounded medications regardless of whether a patient actually needed them.
Zaretzky and Nichols and their conspirators steered patients who did not need compound medications to practitioners, such as telemedicine companies, that they had no prior experience with and who were paid consulting fees by Synergy, authorities said. According to a court document, Nichols and Zarinsky paid a nurse practitioner whose license had lapsed $500 in cash to write prescriptions at an event for insurance beneficiaries held at a gym.
They would then steer those prescriptions to compounding pharmacies that paid Nichols and Zarinsky kickbacks, according to the court document.
Both woman face up to 10 years in federal prison and a fine of as much as $250,000 or twice what they made, whatever is greater.
Sentencing is scheduled for April 23, 2023.
Ken Serrano covers crime, breaking news and investigations. Reach him at 732-643-4029 or kserrano@gannettnj.com.
This article originally appeared on Asbury Park Press: NJ business partners plead guilty in health care fraud
