Allegations of fraud of any kind risk harm to business owners, investors and industry professionals. When the stakes are in the millions, the penalties threaten the stability of businesses through thousands of dollars worth of fines and the futures of those charged with long years of prison time.
When facing these charges, it is important for business owners to understand their rights. It is as important for investors with connections to people who plead guilty to such charges to know where they stand in a potential investigation.
State health benefits conspirators
According to the Department of Justice, a scheme to recruit individuals working as state and local government employees saw two individuals receiving nearly $500,000 between each other. The New Jersey men recruited these employees and compensated them for applying for medically unnecessary compound prescription medications.
Investigators with the FBI had previously charged the two men in 2019 alongside at least four others for health care fraud and wire fraud. These schemes against the New Jersey health benefits programs defrauded
The two men pleaded guilty to fraud charges involving submitting those medically unnecessary prescriptions. Potential penalties include up to 10 years of prison and $250,000 worth of fines.
Connections to conspiracy
The report does not specify whether the recruited government employees may see similar charges of conspiracy. It also does not mention whether there are other unnamed parties still under investigation.
It is difficult to watch business peers and acquaintances face serious charges — especially when those charges may lead to other connections, wrongfully or not. When facing allegations of fraud, it is up to business owners and investors to understand their case and their options for defending their innocence.