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15 Charged in the District of New Jersey for Defrauding Federal Health Programs
NEWARK, N.J. – U.S. Attorney Alina Habba announced today that 15 individuals and entities have been charged or entered into civil settlements in the District of New Jersey for their roles in schemes to defraud Medicare, Medicaid, TRICARE, and private insurers. These actions are part of the Department of Justice’s 2025 National Health Care Fraud Takedown, a coordinated nationwide effort involving 324 defendants across 50 federal districts and 12 state attorneys general offices. The schemes collectively represent over $14.6 billion in intended losses.
“This record-setting takedown delivers justice to criminal actors who prey on vulnerable patients and exploit taxpayer-funded programs,” said U.S. Attorney Habba. “Our office is committed to rooting out fraud that prioritizes profit over patient care.”
The takedown targeted fraudulent billing for medically unnecessary services, submission of false claims, kickback schemes, and billing for drugs and services never provided.
Key Cases in the District of New Jersey
Criminal Charges
- Alan Vaughan, 56, of the United Kingdom, was charged with conspiracy to violate the federal anti-kickback statute. He allegedly paid marketers for Medicare beneficiary data, used telemedicine companies to generate prescriptions, and received kickbacks through a shell company. The scheme resulted in over $80 million in losses to Medicare.
- Taejin Kim, 43, of River Vale, NJ, a physical therapist, was charged with conspiracy to commit health care fraud for submitting false claims to Amtrak’s health plan for unprovided services, resulting in more than $2.25 million in fraudulent payments.
- Nestor E. Jaime, 36, of Pine Brook, NJ, a pharmacy owner, was charged with submitting false claims to Medicare for expensive medications that were neither prescribed nor dispensed. His pharmacy received approximately $2.5 million in improper reimbursements.
Civil Settlements
- Newark Beth Israel Medical Center (NBIMC) agreed to pay $250,000 to resolve allegations that it provided medically unnecessary treatment in its heart transplant program by failing to disclose material medical information to patients.
- Excel Pharmacy Inc. (Jersey City) will pay $3 million to settle allegations of billing Medicare and Medicaid for drugs never dispensed.
- QuickRx LLC (Elizabeth), affiliated with Community Pharmacy, agreed to pay $962,821 for similar false billing practices.
- Raghu Ram Inc., doing business as Camden Discount Pharmacy (Camden), agreed to a $310,000 settlement for submitting false claims.
- Rachit Drug Inc. (Newark) agreed to pay $225,000 over claims for undispensed medications.
- Premier Dental Holdings, Inc., along with affiliated dental groups, will pay $540,000 to resolve allegations of billing for services by uncredentialed providers using the credentials of others.
National Enforcement Effort
Attorney General Pamela Bondi described the takedown as a “historic step in protecting taxpayer dollars and holding fraudsters accountable.” The action involved collaboration among the Department of Health and Human Services Office of Inspector General (HHS-OIG), the FBI, Amtrak’s Office of Inspector General, and dozens of federal and state law enforcement partners.
Acting HHS-OIG Inspector General Juliet T. Hodgkins added, “Our agents work relentlessly to dismantle fraud schemes that endanger patients and drain critical health care resources.”
Descriptions of each case can be found on the Department of Justice’s website.
About the U.S. Attorney’s Office – District of New Jersey
Covering one of the nation’s most active regions for health care enforcement, the U.S. Attorney’s Office for the District of New Jersey works alongside federal and state agencies to prosecute fraud and protect the integrity of public health systems.
All individuals charged are presumed innocent unless and until proven guilty beyond a reasonable doubt.
