As part of William Hickman’s 27-month sentence for his part in a health insurance fraud scheme, he has been ordered to pay $51.7 million in restitution.
Below is the list of companies that were defrauded and what they are owed:
$45.1 million – New Jersey Division of Pension & Benefits$1.9 million – New Jersey Employer Group Waiver Plan$1.1 million – MSD LLC$598,813 – County of Bergen$494,051 – AmeriHealth$477,485 – Armstrong Group of Companies$321,754 – Howell Township Board of Education$219,384 – Horizon Blue Cross Blue Shield NJ Direct (Cherry Hill Public School)$101,084 – Anthem Blue Cross Blue Shield Verizon$73,663 – Department of Defense$47,130 – Horizon Blue Cross/Blue Shield of New Jersey, plan administrator for Novartis Pharmaceuticals$46,852 – NJ Transit$41,978 – South Jersey Transportation Authority$29,731 – Lockheed Martin Group$7,446 – Munich Reinsurance of America$5,754 – Plumbers and Steamfitters Local 322$2,522 – Halliburton Energy Services Group$967.20 – ESI PDP Choice Plan$264 – AtlantiCare Administrators
Source: Court records
A Northfield man who led a health insurance scheme that defrauded the state of $50 million was sentenced to 27 months in federal prison last week.
As part of the sentence imposed by U.S. District Court Judge Edward S. Kiel on Aug. 18, William Hickman also must pay more than $51.7 million in restitution to victims including more than $45.1 million to the state Division of Pension and Benefits, according to court documents.
Hickman could serve his sentence at FCI Fairton in Fairfield Township, but that will be determined by the federal Bureau of Prisons, according to court documents. After being released from prison, he will be subject to three years of supervisory release.
Hickman pleaded guilty in June 2020 to conspiracy to commit health care fraud, wire fraud and conspiracy to commit money laundering for leading a scheme that used medication sales to earn money from state health benefits holders.
His sentencing was delayed countless times.
The investigation into the scheme started in 2017 when federal subpoenas were issued to Atlantic City, Ventnor and Margate seeking information about potential fraud targeting public-employee prescription benefits.
Hickman led the scheme through the company Boardwalk Medical LLC, which was created under his wife’s name while he was employed by New Jersey pharmaceutical company Merck.
Hickman used recruiters and sub-recruiters to obtain unnecessary compound medication prescriptions from state benefits carriers, knowing their insurance plans would return heavy kickbacks from the drugs. He was paid more than $26 million by a compounding pharmacy for prescriptions he and his conspirators secured. That money would trickle down to his main conspirators and those who worked under them.
The scheme has resulted in more than 41 convictions and guilty pleas of New Jersey residents, including three Margate firefighters, the former co-owner of Atlantic City’s Tony’s Baltimore Grill and an ex-Ventnor police sergeant.
Contact Nicholas Huba: 609-272-7046 nhuba@pressofac.com X @acpresshuba
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Northfield man gets 27 months for leading $50M health insurance scheme appeared first on Insurance News | InsuranceNewsNet.
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