Freehold Man Admits To Role In Healthcare Benefits Scheme: Feds

Freehold NJ

19 November, 2020

3:02 PM

Description

FREEHOLD, NJ - A former pharmaceutical and marketing company sales representative from Monmouth County admitted his role in a conspiracy to defraud a New Jersey state health benefits program, federal authorities announced Wednesday. Joshua Darstek, 38, of Freehold, pleaded guilty this week to conspiracy to commit health care fraud, according to a news release from U.S. Attorney Craig Carpenito. Darstek worked as a sales representative for two compounding pharmacies and a marketing company between 2014 and 2016, marketing and selling compounded drugs to physicians, including pain, scar and wound creams and certain supplements and vitamins. According to the news release, compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of one patient. The FDA does not approve compounded drugs, but a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient. The companies paid Darstek based on a percentage of the reimbursement payments they received from health care benefit programs for each prescription that he referred to the compounding pharmacies, with Darstek participating in a "conspiracy that recruited patients, many of whom had prescription drug coverage under the New Jersey School Employees Health Benefits Program, to submit medically unnecessary prescriptions for compounded drugs to the pharmacies," according to the U.S. Attorney's Office. The conspiracy to commit health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine. As part of his plea agreement, Darstek must give up $148,500 in criminal proceeds and pay restitution of at least $594,639. He is slated to be sentenced March 23.