In a major legal development, 46-year-old Michael Drobish, the previous owner of a marketing company in New Jersey, has received a 15-month prison sentence. Drobish was convicted for his involvement in a fraudulent scheme that embezzled more than $6 million from both public and private health benefits programs. The scheme revolved around billing for unnecessary compounded prescriptions. This case was uncovered by U.S. Attorney Philip R. Sellinger.
Drobish, who resides in Cedar Grove, NJ, confessed to the charges through a video conference in front of U.S. District Judge John Michael Vazquez. The sentencing was carried out by U.S. District Judge Katharine S. Hayden in Newark federal court. Drobish pleaded guilty to conspiracy to commit healthcare fraud.
U.S. Attorney Sellinger criticized Drobish’s actions stating, “This defendant exploited the health care system…These compounding fraud schemes cause millions in losses to the health care system with zero benefit to beneficiaries.”
Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service expressed similar concerns, highlighting the potential harm these schemes can cause to TRICARE, the healthcare system for military members and their families.
From April 2014 to January 2017, Drobish and his accomplices engaged in submitting fraudulent prescriptions to different insurance plans. They took advantage of the generous reimbursement rates for compounded medications, such as scar creams and vitamins.
Drobish utilized his marketing company to employ sales representatives who would specifically target insured individuals and convince them to acquire unnecessary prescriptions. In some cases, these representatives were even bribed to achieve their objectives. Consequently, telemedicine companies would issue these prescriptions, which were often paid for by Drobish’s company, without conducting proper medical examinations.
Compounding pharmacies colluded with Drobish to fill the prescriptions, and he received a portion of the reimbursements. The illegal profits totaled $532,650, and a restitution order of around $6.1 million was issued.
The FBI, led by Special Agent in Charge James E. Dennehy in Newark, and the U.S. Department of Defense Office of Inspector General played a crucial role in the investigation that led to the sentencing. Assistant U.S. Attorney Jordann Conaboy from the Opioid Abuse and Prevention Unit in Newark represented the government’s case.
Law enforcement agencies are committed to protecting public funds and maintaining the integrity of healthcare systems by actively combating healthcare fraud. This case serves as an example of their ongoing efforts in the fight against fraudulent activities.
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