<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

Pharmaceutical Employee Admits Scheme To Defraud Military Health Insurance Program
FraudsWatch is а site reporting on fraud and scammers on internet, in financial services and personal. Providing a daily news service publishes articles contributed by experts; is widely reported in thе latest compliance requirements, and offers very broad coverage of thе latest online theft cases, pending investigations and threats of fraud.
Leave a Comment


The Ultimate Guide to Avoiding Online Scams
Stay safe online! Our comprehensive 2025 guide covers phishing, AI scams, investment fraud & more. Learn red flags, prevention steps & how to report scams. Protect yourself now via Fraudswatch.com.
Read More
Categories
- AOL Aim Live ATT
- Celebrities Scammed
- Credit Card
- Credit Scam
- Email Man-Male Scammers
- Email Scam List
- Email Scams Examples
- Fraud
- Fraud News From World
- Fraud Prevention
- Gmail.com
- Hotmail.com
- Insurance
- Jobsearch Scams
- Loans
- Military Scammer
- Mortgage
- Nigerian 419
- Report Fraud
- Romance Scammer
- Russian Email Scam
- Scammer
- Scams Ways
- Shopping & Saving Money
- Spam
- White-Collar Crime
- Yahoo.com
Recent Posts
- The Unseen Battlefield: Your Definitive 2025 Guide to Advanced Scam Detection July 9, 2025
- Bulletproof Betrayal: Inside the $5.2 Million ShotStop Fraud That Sold Counterfeit Body Armor to America’s Law Enforcement July 8, 2025
- The Weapon of Experience: Inside the $28M Memphis Pharmacy Fraud and a Prior Conviction at the Heart of a Record-Breaking National Takedown July 2, 2025
- Chicago Businessman Convicted in $55 Million Fraud Scheme Targeting COVID-19 Relief Funds and Financial Institutions July 2, 2025
- Betrayal in the Classroom: An In-Depth Analysis of the Unprecedented Criminal Charges Against the School District of Philadelphia for Asbestos Failures June 28, 2025
Tags
Bank Fraud
Banking Fraud
Bankruptcy Fraud
Bribery Scheme
Business Fraud
Celebrities Scammed
Charity Fraud
Commodities Fraud
Consumer Fraud
Consumer Protection
COVID-19 relief fraud
Credit
Credit card
Credit Card Fraud
Credit Repair
Credit Repair Scams
Crime
Cyber Crime
Cybercrime
Cyber Criminals
Cybersecurity
data breach
Dating Scammer
Elder Fraud
Elder Justice
Email
Email Letter
Email Scam
Email Scam Examamples
Email Scam Example
Email Scam Examples
Email Scams
Email Scams Examples
False Claims Act
FBI
Fedex
Financial Crime
Financial Fraud
Fraud
fraud prevention
Fraud Scheme
Health
Health and Wellness Scams
Health Care Fraud
Healthcare Fraud
Identity Theft
Immigration Fraud
Insurance
Insurance Fraud
Internet Fraud
Investment Fraud
job
Job Scam
job scams
Loan
Loan Fraud
Loan Scam
Loans Fraud
Lottery Scam
Mail Fraud
Medicare Fraud
Microsoft
Military Scammer
Military Scammer LT. JEFFREY MILLER
Military Scammers
Money Laundering
Money Laundering Scheme
Mortgage
Mortgage Fraud
Mortgage Scam
Mortgage Scams
National Security
Nigerian
Nigerian 419
Nigerian Scam
online fraud
Online Scams
PayPal
personal information
Phishing
Phishing Scams
Ponzi Scheme
Public Corruption
Ransomware
Report Fraud
Romance Scam
Romance Scammer
Romance Scammers
Romance Scams
Scam
Scammer
Scammers
scams
Securities Fraud
spam
Tax Evasion
Tax Fraud
Travel Scams
White Collar Crimes
wire fraud