Corey Sutor, a 42-year-old former firefighter from Egg Harbor Township, New Jersey, has been sentenced to one year and a day in prison for his role in a conspiracy defrauding New Jersey state health benefits programs of over $2 million.
The case, presided over by U.S. District Judge Robert B. Kugler in Camden federal court, concluded on November 13, 2023. Sutor, who previously admitted guilt, was charged with conspiracy to commit healthcare fraud.
Sutor, along with associates, exploited the system between May 2015 and February 2016. They targeted compounded medications – specialized mixtures created by pharmacists for specific patient needs – which, though not FDA-approved, are legitimate when prescribed correctly. The scheme involved persuading individuals to acquire unnecessary and costly compounded medications, including creams and vitamin combinations, largely reimbursed by New Jersey's health benefits programs for state and school employees.
Sutor's company, which marketed these prescriptions, received kickbacks from the compounding pharmacies. The conspiracy involved recruiting public employees, offering financial incentives, and securing fraudulent prescriptions without medical examinations. This operation led to New Jersey paying over $2 million in fraudulent claims, with Sutor personally gaining $150,398.
Beyond his prison term, Sutor faces two years of supervised release. He is mandated to forfeit his criminal proceeds and pay at least $2.09 million in restitution. The FBI, IRS – Criminal Investigation, and the U.S. Department of Labor's Office of Inspector General played critical roles in uncovering the fraud.
This case highlights the ongoing battle against healthcare fraud in New Jersey, demonstrating the severe consequences for those who attempt to exploit state health systems. The collaborative efforts of federal agencies underscore their commitment to protecting public funds and ensuring justice for fraudulent actions against state programs.