NJ Drug Sales Rep Admits To Scheme To Profit From Prescriptions

NEWARK, NJ — A former New Jersey sales representative for several compounding pharmacies and marketing companies admitted his role in a scheme to profit from unnecessary prescriptions, according to Acting U.S. Attorney Rachael A. Honig.

Profits from the scheme reached $7.89 million.

Christopher Cuffari, 55, of Little Falls, pleaded guilty to a conspiracy to commit health care fraud charge.

Between November 2014 and September 2017, Cuffari took part in a scheme that involved submitting fraudulent prescriptions for compounded medications to public and private insurance plans.

The basis of this was the fact that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates, according to Honig.

To profit as a sales representative, Cuffari targeted people who had insurance plans that covered compounded medications and then convinced them get those prescriptions, even if they didn't medically need them, Honig said. Sometimes he would pay those people cash.

In order to get the prescriptions, Cuffari arranged for payments to be made to a New Jersey-based physician. They would then be filled by the compounding pharmacies Cuffari worked for, which would receive reimbursement from the insurance plans and would pay Cuffari a cut of the money, according to Honig.

Cuffari now faces a sentence of up to 10 years in prison and a $250,000 fine or twice the gross gain or loss from the offense. He will have to forfeit $995,328 in criminal proceeds he received for his role in the scheme and pay restitution of at least $7.89 million.

His sentencing is scheduled for Nov. 9.