MIDDLE TOWNSHIP, N.J. (CBS) – A Middle Township teacher has admitted to defrauding state health benefits programs and other insurers out of over $2 million.

Authorities say 46-year-old Shawn Sypherd submitted fraudulent claims for medically unnecessary prescriptions.

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According to court documents, Sypherd served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy.

Investigators say the conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. They also knew that some New Jersey state and local government and education employees, including teachers had insurance coverage for these particular compound medications.

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The alleged crimes happened during January 2015 through April 2016. Officials say Sypherd received approximately $354,264.06 for his role in the scheme.

As part of the plea agreement, Sypherd must forfeit $354,264.06 in criminal proceeds and pay restitution of at least $2,439,548.32.

Sypherd faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

His sentencing is scheduled for June 1.