<h2>Pharmaceutical Employee Admits Scheme To Defraud Military Health Insurance Program</h2>
<p>NEWARK, N.J. – A Media, Pennsylvania, man today admitted defrauding TRICARE – a health insurance program for members of the military and their families – by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick announced.</p>
<p>Jason Cerge, 41, a pharmaceutical sales representative, 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.</p>
<p>According to documents filed in this case and statements made in court:</p>
<p>Cerge admitted that from September 2014 through May 2015, he participated in a scheme to defraud TRICARE by knowingly submitting fraudulent claims for medically unnecessary prescription compounded medications – including scar creams, pain creams, and metabolic supplements – that were marketed by an entity referred to in the information as “Company A.” The conspirators knew that TRICARE reimbursed pharmacies between $2,500 and $18,800 for each of these compounded medications. The conspirators entered into agreements with certain compounding pharmacies nationwide to receive a percentage of the amount reimbursed for each prescription diverted to that pharmacy.</p>
<p>Cerge was recruited into the scheme by Peter Pappas, 45, of Drexel Hill, Pennsylvania. Cerge then recruited a former member of the U.S. <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/military-scammer/" title="military" data-wpil-keyword-link="linked" data-wpil-monitor-id="387">military</a>, a conspirator identified in the information as “CC-2,” to approach other members of the military and their families. CC-2 paid cash bribes to TRICARE beneficiaries in exchange for their TRICARE information and agreement to receive medically unnecessary prescription compounded medications.</p>
<p>Cerge placed these TRICARE beneficiaries’ information onto preprinted prescription forms and presented them to a New Jersey physician for a signature. Cerge knew that the physician would immediately sign the prescriptions without examining or speaking with the patients.</p>
<p>Afterwards, the prescriptions were faxed to certain compounding pharmacies associated with Company A who would bill TRICARE for the medication. These compounding pharmacies then paid Company A a percentage of each prescription paid by TRICARE, which was then distributed to Cerge and other members of the conspiracy.</p>
<p>As part of his plea agreement, Cerge must forfeit $12,816.24 in criminal proceeds he received for his role in the scheme and pay restitution of at least $204,198.11.</p>
<p>Cerge faces a statutory maximum term of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 30, 2018.</p>
<p>Three other defendants – Peter Pappas, Stephanie Naar, and Julie Andresen – have pleaded guilty to their roles in the scheme and await sentencing.</p>
<p>Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the ongoing investigation leading to the guilty plea.</p>
<p>The government is represented by Assistant U.S. Attorney Erica Liu of the United States Attorney’s Office Health Care and Government Fraud Unit in Newark.</p>
<p>The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.36 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.</p>
<p>Defense counsel: Scott Godshall Esq., Media, Pennsylvania</p>
<p><a href="https://www.justice.gov/usao-nj/pr/pharmaceutical-employee-admits-scheme-defraud-military-health-insurance-program">Original PressReleases&#8230;</a></p>

Health Care Fraud: Jason Cerge Pleaded Guilty For Defrauding TRICARE – a Health Insurance Program For Members of The Military
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