By: Richard L. Smith
A former New Jersey pharmacy owner will spend time behind bars after admitting to orchestrating a multi-million-dollar scheme that defrauded Medicare, federal authorities announced.
According to information released by the U.S. Attorney’s Office, Nestor E. Jaime, 37, of Pine Brook, was sentenced on April 15, 2026, in Newark federal court to 24 months in prison.
The sentence was handed down by U.S. District Judge Katharine S. Hayden following Jaime’s earlier guilty plea to health care fraud.
Authorities said Jaime admitted that between December 2019 and December 2021, he used a pharmacy he owned in Paterson to submit hundreds of fraudulent claims to Medicare for the high-cost medication despite never purchasing or dispensing the drug.
Investigators determined that Jaime billed Medicare more than $4,000 per prescription for Dificid, using the identities of dozens of beneficiaries who were never prescribed the medication.
To make the claims appear legitimate, he fraudulently used health care providers’ identification numbers without their authorization.
As a result of the scheme, Medicare paid out approximately $2.5 million in false reimbursements.
Prosecutors said Jaime used the proceeds to fund a lavish lifestyle, including the purchase of luxury vehicles and other personal expenses.
In addition to the prison sentence, Jaime was ordered to serve two years of supervised release and must repay $2,505,754 in restitution.
Federal officials noted that health care fraud carries a maximum penalty of up to 10 years in prison, along with significant financial penalties.
The case underscores ongoing efforts by federal authorities to crack down on fraud targeting government health care programs.