Holmdel Man Admits To $3.4M Prescription Drug Scheme

HOLMDEL, NJ – A former pharmaceutical sales rep from Holmdel has admitted to leading a drug scheme that prescribed patients unnecessary medications and cost a North Jersey county prescription benefits program over $3.4 million, authorities said.

Paul Camarda, 39, of Holmdel, pleaded guilty before the U.S. District Judge Robert B. Kugler in Camden federal court on Tuesday to one count of conspiracy to commit health care fraud and one count of conspiracy to obstruct justice and engage in money laundering.

Bergen County prison guards previously pleaded guilty in the case, with a Budd Lake man admitting in federal court to paying medical patients to get unnecessary prescriptions and lying to federal agents to cover up the scheme.

According to court documents, Camarda was already a sales rep for a pharmaceutical company when he created a side business to independently market medical products and services for other companies, including compounded (specialty medications mixed by a pharmacist to meet the specific medical needs of one patient) prescription medications for specialty pharmacies.

After learning that the Bergen County Prescription Benefits Plan reimbursed up to thousands of dollars for a one-month supply of certain compounded prescriptions, Camarda recruited individuals with BCPBP coverage. From 2015 to 2017, Camarda gave recruits blank prescription forms for compounded medications and directed them to go see an unnamed doctor to obtain his authorization.

As part of his arrangements with conspirators, Camarda was paid a percentage of the insurance payments received for prescriptions arranged by him. The prescriptions were filled with four different pharmacies, which paid Camarda a portion of the insurance payments received. The Holmdel man received a total $2.2 million in the scheme, officials said.

The also scheme caused more than $3.4 million in fraudulent claims to be submitted for compounded medications.

“Camarda’s payments from the compounding pharmacies and his conspirators, as well as Camarda’s payments to his recruits, served as the basis for the money laundering conspiracy charge to which Camarda pleaded guilty,” the U.S. Attorney’s Office said.

Camarda faces a maximum 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. The obstruction of justice and money laundering conspiracy count carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.

Sentencing is scheduled for Nov. 18.

Acting U.S. Attorney Rachael A. Honig credited special agents of the IRS Criminal Investigation, special agents of FBI’s Atlantic City Resident Agency and special agents of the U.S. Department of Labor Office of Inspector General, New York Region with the investigation leading to Camarda’s guilty plea.