Ex-Atlantic City firefighter gets probation for health care fraud

A former Atlantic City firefighter will avoid prison time for his role in a prescription compound medication scandal that cost state health care plans nearly $50 million.

Michael Pepper was sentenced to three years of probation Tuesday, the U.S. Attorney's Office said.

Pepper, who was living in Northfield at the time charges were brought against him, pleaded guilty to conspiracy to commit health benefits fraud before U.S. District Court Judge Robert B. Kugler in August 2017.

Under local pharmaceutical salesman William Hickman, also of Northfield, Pepper and others used unneeded compound medications prescribed by doctors to get health insurance kickbacks once those medications were fulfilled by a pharmacy in Louisiana.

The prescriptions included compounded pain creams, scar creams, antifungal creams, libido creams and certain vitamin combinations.

As part of his plea, Pepper agreed in 2017 to relinquish $113,627 and pay restitution of $719,481.

Pepper was a 10-year veteran of the Atlantic City Fire Department before resigning last month with a salary of $101,741, according to state records.