July 6, 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
– Ronald Chillemi, Acting Insurance Fraud Prosecutor
Media Inquiries-
Peter Aseltine
609-292-4791
Citizen Inquiries-
609-292-4925
Ringleader and Doctor Plead Guilty in Statewide Crime Network that Dealt Pain Pills and Defrauded Medicaid
Charges resulted from investigation by AG’s Office & Jersey City Police Department
TRENTON – Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced that a ringleader and a doctor pleaded guilty today to participating in 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.
According to Acting Insurance Fraud Prosecutor Ronald Chillemi, Louis Lisi, 35, of Union City, pleaded guilty today to a first-degree charge of leader of a narcotics trafficking network before Superior Court Judge Kevin G. Callahan in Hudson County. , 54, of West Orange, pleaded guilty today to second-degree health care claims fraud. The state will recommend that Lisi be sentenced to 24 years in prison, including 12 years of parole ineligibility, and that be sentenced to four years in prison. and Lisi must pay a total of $128,081 in restitution. also must pay a $101,281 civil penalty. will be debarred from the Medicaid program for five years. Judge Callahan scheduled sentencing for Sept. 2.
Deputy Attorneys General Debra A. Conrad and Cynthia M. Vazquez took the guilty pleas for the state. The charges stem from Operation MedScam, a cooperative investigation by the Medicaid Fraud Control Unit of the Office of the Insurance Fraud Prosecutor and the Jersey City Police Department’s Special Investigation Unit.
“By distributing dangerous narcotics on the street and fraudulently billing Medicaid, these defendants were a double threat to society, fueling drug addiction and draining resources earmarked to provide health care to our most vulnerable residents,” said Attorney General Dow. “We will continue to aggressively target criminal enterprises such as this one.”
“Thirty-four defendants have now pleaded guilty for their roles in this black market painkiller ring,” said Director Taylor. “These pleas speak to the great weight of the evidence that we gathered through our highly effective partnership with the Jersey City Police Department.”
“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.”
“Too often we uncover doctors and pharmacists who use their professional licenses to turn an illicit profit through drug dealing and Medicaid fraud,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “These cases are a top priority for our Medicaid Fraud Control Unit.”
Also today, Amir Tadros, 33, of Jersey City, pharmacist in charge at Five Corners Pharmacy, was sentenced by Judge Callahan to five years of probation. The state had asked for 364 days in jail pursuant to his plea agreement, but the judge imposed a sentence of straight probation. Tadros pleaded guilty on May 24 to third-degree health care claims fraud. Tadros will be debarred from the Medicaid program for five years. He was ordered to pay $55,586 in restitution and an additional civil penalty in the same amount.
Lisi, and Tadros were charged in a Feb. 14, 2011 state grand jury indictment obtained by the Office of the Insurance Fraud Prosecutor. The indictment charged that between April 2008 and February 2010, the three men conspired with more than 30 others in an enterprise that unlawfully distributed prescription narcotics. Another ringleader, two other pharmacists and 28 street-level drug dealers previously pleaded guilty in the case. A second doctor, Magdy Elamir, 58, of Saddle Brook, was indicted on July 15, 2010. The charges against Elamir are pending.
In pleading guilty, Lisi admitted that he was one of the leaders of the enterprise who financed, organized, supervised and managed the subordinate members in the transportation and distribution across New Jersey of prescription narcotics, including Oxycodone and Percocet.
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.
admitted that he was one of the licensed medical professionals involved in this ring. He admitted that between January 1, 2009 and Oct. 19, 2009, he caused claims to be submitted to the Medicaid program for prescription drugs dispensed to Medicaid beneficiaries, when in fact the prescriptions were not dispensed to the intended patients. The claims were subsequently paid out by the Medicaid program. In pleading guilty, Tadros admitted that between August 1 and Oct. 9, 2009, he submitted claims to the Medicaid program for prescription drugs dispensed to Medicaid beneficiaries, even though the prescription drugs were never dispensed. The claims were subsequently paid out by the Medicaid program.
agreed to the temporary suspension of his medical license in December 2009 in lieu of a formal disciplinary hearing before the New Jersey Board of Medical Examiners. Tadros’ license to practice pharmacy is inactive. The Board of Medical Examiners and Board of Pharmacy will consider disciplinary actions against their licenses following the resolution of these criminal matters.
Detective Kevin Gannon, Sgt. Frederick Weidman, Deputy Attorneys General Debra A. Conrad and Cynthia Vazquez were assigned to the investigation. Deputy Attorney General Erik Daab, who is the Chief of the Medicaid Fraud Control Unit, assisted in the investigation. They were assisted by Medicaid Fraud Control Unit Analyst Mitzi Gross, 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. Deputy Attorney General Carol Stanton Meier is handling the asset forfeiture action.
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