Man Must Pay $3.5M In Restitution For Role In Drug Scheme

CAMDEN, N.J. (AP) — A high school guidance counselor must pay nearly $3.5 million in restitution for his role in a ring that defrauded the state's health benefits plan and other insurers by submitting prescriptions for unnecessary compounded drugs.

Michael Pilate pleaded guilty Thursday to conspiracy to commit health care fraud. The 39-year-old Williamstown man, who works at Pleasantville High School, faces up to 10 years in state prison when he's sentenced May 11.

Federal prosecutors say Pilate is the 13th person involved in the ring to plead guilty. Authorities say it used a network of recruiters, doctors and state and local employees to get reimbursed for phony prescriptions and expensive and medically unnecessary compounded medications.

Pilate will forfeit $392,684 and pay at least $3.49 million in restitution — the amount of fraud resulting from his participation in the scheme.

(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)