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Former New Jersey Marketing Company Owner Sentenced to 15 Months for Healthcare Fraud Scheme

New Jersey

By: Richard L. Smith 

Michael Drobish, the former owner of a New Jersey marketing company, has been sentenced to 15 months in prison for his involvement in a scheme that defrauded public and private health benefits programs of over $6 million by billing for medically unnecessary compounded prescriptions. U.S. Attorney Philip R. Sellinger announced the sentence following Drobish's previous guilty plea to conspiracy to commit healthcare fraud.

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According to a statement released by federal officials, U.S. District Judge Katharine S. Hayden imposed the sentence in Newark federal court, underscoring the seriousness of the offense.

Drobish's scheme exploited the healthcare system by submitting fraudulent prescriptions for compounded medications from April 2014 to January 2017.

These prescriptions, including scar creams, wound creams, and metabolic supplements/vitamins, were billed at inflated reimbursement rates.

The scheme involved hiring sales representatives to target individuals with insurance plans covering compounded medications, often persuading them to obtain unnecessary prescriptions for financial incentives.

Telemedicine companies then issued prescriptions without proper medical examinations.

Compounding pharmacies, in collusion with Drobish, filled these prescriptions, and insurance plans reimbursed them.

Drobish's marketing company received a portion of these reimbursements, with commissions paid to sales representatives.

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In addition to the prison term, Drobish has been sentenced to three years of supervised release, must forfeit $532,650 in criminal proceeds, and pay approximately $6.1 million in restitution.

The sentencing reflects the commitment to combating healthcare fraud and protecting the integrity of health benefits programs.