February 15, 2011
Office of The Attorney General
– Paula T. Dow, Attorney General
Division of Criminal Justice
– Stephen J. Taylor, Director
Office of the Insurance Fraud Prosecutor
– Riza Dagli, Acting Insurance Fraud Prosecutor
Media Inquiries-
609-292-4791
Citizen Inquiries-
609-292-4925
Alleged Leader, Doctor and Pharmacist Indicted in Statewide Crime Network that Dealt Pain Pills and Defrauded Medicaid
TRENTON – Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced the indictment yesterday of an alleged ringleader, a doctor and a pharmacist in connection with a narcotics ring that defrauded Medicaid and distributed black market prescription pain pills such as OxyContin and Percocet in Hudson, Bergen, Monmouth and Ocean counties.
“We charge that these three men and their co-conspirators were responsible, on a weekly basis, for distributing thousands of dangerous narcotic pills across four New Jersey counties,” said Attorney General Dow. “Through this joint investigation with the Jersey City Police Department, we moved aggressively to shut down this ring and bring its members to justice.”
“We are seeing more of these complex cases involving doctors and pharmacists who conspire with drug dealers to defraud Medicaid and supply street-level distribution rings,” said Director Taylor. “We will continue to work with our law enforcement partners to detect and prosecute these criminal networks.”
“The Jersey City Police Department, in cooperation with the Division of Criminal Justice, is targeting a problem that is increasing both statewide and nationwide,” said Jersey City Police Chief Thomas Comey. “We will continue to relentlessly pursue drug dealers, even if they have medical or pharmacy licenses.”
“We allege that the licensed professionals involved in this criminal network made additional money by fraudulently billing Medicaid,” said Acting Insurance Fraud Prosecutor Dagli. “Medicaid fraud costs the public many millions of dollars each year. We will continue to work diligently through our Medicaid Fraud Control Unit to combat such fraud.”
According to Acting Insurance Fraud Prosecutor Riza Dagli, the state grand jury indictment charges Louis Lisi, 35, of Union City, an alleged leader of the ring, , 54, of West Orange, whose medical practice is on Newark Avenue in Jersey City, and Amir Tadros, 33, of Jersey City, a pharmacist in charge at Five Corners Pharmacy on Summit Avenue in Jersey City. The three defendants were variously charged with racketeering (1st degree), conspiracy (2nd degree), second- and third-degree narcotics offenses, employing a juvenile in a drug distribution scheme (2nd degree), endangering the welfare of a child (2nd degree), health care claims fraud (2nd degree), Medicaid fraud (3rd degree), forgery (3rd degree), and money laundering (3rd degree). Lisi is also charged with being a leader of a narcotics trafficking network (1st degree).
The indictment alleges that between April 2008 and February 2010, Lisi, and Tadros conspired with more than 30 others in an enterprise that unlawfully distributed prescription narcotics. The indictment stems from Operation MedScam, an ongoing investigation by the Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Control Unit and the Jersey City Police Department’s Special Investigation Unit. Another ringleader, two other pharmacists and 28 street-level drug dealers have already pleaded guilty in the case. A second doctor, Magdy Elamir, 57, of Saddle Brook, was indicted on July 15, 2010. The case against Elamir is still pending.
It is alleged that Lisi was one of the leaders of the enterprise who financed, organized, supervised and managed the subordinate members in the transportation and distribution of prescription narcotics, including Oxycodone and Percocet, across New Jersey. The investigation revealed that the enterprise obtained fraudulent prescriptions for narcotics from licensed medical doctors, allegedly including and Elamir. Lower-level members of the ring were paid cash to solicit individuals, who were also paid cash, to see the doctors to obtain the fraudulent prescriptions. The doctors allegedly generated prescriptions for thousands of pain pills for the purported patients, who in fact were never examined or who had no medical need for the pills. Medicaid was allegedly billed for the phony doctor visits.
The enterprise also involved licensed pharmacists, allegedly including Tadros, who unlawfully dispensed prescriptions for thousands of narcotic pills in exchange for cash. The pharmacists dispensed the drugs even though the prescriptions were often not in the names of the enterprise members who obtained the drugs. In addition, the pharmacists, allegedly including Tadros, billed Medicaid for prescriptions that were not, in fact, dispensed.
The enterprise accumulated thousands of prescription pain pills each week that were sold across New Jersey. A single 30 milligram OxyContin pill, known as a “blue,” typically sells for $10 to $20 on the street, while a 10 milligram Percocet pill sells for $5 to $8.
The indictment also alleges that Lisi solicited and hired persons 17 years old or younger to participate in the drug ring, and that he abused or neglected two children, born in 1999 and 2001, who were in his legal care.
Detective Kevin Gannon, Sgt. Frederick Weidman and Deputy Attorneys General Erik Daab, who is the Chief of the Medicaid Fraud Control Unit, Debra Conrad and Cynthia Vazquez were assigned to the investigation.
They were assisted by Medicaid Fraud Control Unit Analysts Mitzi Gross and Anne Howell, as well as the following members of the Jersey City Police Department’s Special Investigation Unit under the supervision of Chief Thomas Comey: Capt. Gary Lallo, Lt. Frederick Younger, Sgt. Anthony Musante, Sgt. Wally Wolf, Detective Wael Shahid, Detective Jeff Guilfoyle, Detective
Vincent Disbrow, Detective Hector Marrero, Police Officer Alex Torres, Police Officer Chris Dolan, Police Officer Eamon Nally and Police Officer Erik Infantes.
The indictment was handed up to Superior Court Judge Edward M. Neafsey in Mercer County, who assigned the case to Hudson County. A copy of the indictment is posted with this release at www.njpublicsafety.com.
The leader of a narcotics trafficking network charge carries a mandatory sentence of life in state prison, including 25 years of parole ineligibility, and a fine of up to $750,000. The other first-degree charges carry a maximum sentence of 20 years in prison and a $200,000 fine. Second-degree crimes carry a maximum sentence of 10 years in prison and a $150,000 fine. Third-degree Medicaid fraud carries a maximum sentence of three years in prison and a $10,000 fine, while the other third-degree crimes carry a maximum sentence of five years in prison and a $15,000 fine.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.
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