New Jersey firefighter convicted on 4 counts in multimillion-dollar health care fraud

Thomas Sher, 50, of Northfield, New Jersey, found guilty of one count of conspiracy to commit health care fraud and three counts of health care fraud following a 12-day trial before U.S. District Judge Robert B. Kugler in Camden federal court.

According to documents filed in this case and the evidence at trial:

Sher was part of a criminal conspiracy in which state and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications. Sher caused the pharmacy benefits administrator to pay out almost $1 million for medically unnecessary compound prescription medications for individuals they recruited into the scheme. Sher directly received approximately $115,000 from the scheme.

Sher and others were indicted in March 2019 on charges that they defrauded New Jersey health benefits programs and other insurers. To date, approximately 40 people have been convicted or pleaded guilty to the conspiracy.

Sher faces a maximum penalty of 10 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 Jan.10, 2023.

Attorney for the United States Khanna credited special agents of the FBI's Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today's verdict.

The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division and Deputy Chief of the Criminal Division Desiree L. Grace.

Press Release Number:

22-332

Updated September 8, 2022