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.
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.
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.