NJ doctor faces prison for role in $25 million health insurance scam

Doctor admitted to providing more than 200 phony prescriptions

NJ doctor faces prison for role in $25 million health insurance scam

Life & Health

By Ryan Smith

A New Jersey doctor pleaded guilty Friday to participating in a massive $25 million healthcare fraud scheme.

John Gaffney, 55, faces up to 10 years in prison. He admitted to writing prescriptions for patients he never saw as part of the scam, which targeted teachers, firefighters and police officers.

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Prosecutors said that the case involved municipal employees with public health benefits fraudulently obtaining medically unnecessary prescriptions, according to the Philadelphia Inquirer.

“Dr. Gaffney sold phony prescriptions for unnecessary medications to patients he never examined as part of a sophisticated scheme to defraud a prescription benefits program available to New Jersey state and municipal employees,” acting US Attorney William Fitzpatrick said. “In an era when many Americans work hard to maintain affordable health insurance for their families, Dr. Gaffney and his conspirators criminally exploited the healthcare system and left New Jersey taxpayers on the hook for approximately $25 million in losses.”

Gaffney admitted in court to signing more than 200 phony prescriptions, according to the Inquirer. Most of those prescriptions, Gaffney said, were for public employees.

Five other people have pleaded guilty to participation in the scam and are awaiting sentencing.


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