Morris County Man Admits to Conspiracy to Commit Health Care Fraud

A Morris County, man today admitted participating in a conspiracy to bill health insurance companies for medically unnecessary compounded prescriptions, U.S. Attorney Craig Carpenito announced.

Peter Frazzano, 46, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud.

According to documents filed in this case and statements made in court:

Frazzano admitted that from November 2014 through March 2016 he participated in a conspiracy to defraud health insurance plans, including N.J. State Health Benefits plan, by knowingly causing the billing of fraudulent claims for medically unnecessary prescription compounded medications, such as scar creams, pain creams, and metabolic supplements.

To ensure that a physician prescribed compounded medications regardless of medical necessity, Frazzano and a conspirator recruited a doctor to sign prescriptions ordering compounded medications without ever examining or interacting with any of the individuals who were to receive the medications.

The count to which Frazzano pleaded guilty is punishable by a maximum of 10 years in prison and a $250,000 fine or twice the gross gain or loss from the offense.

As part of his plea agreement, Frazzano must forfeit $270,751 in criminal proceeds and pay restitution of $2,727,292.

Sentencing is scheduled for Nov. 19, 2019.