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For Immediate Release:  
For Further Information Contact:
May 3, 2005

Office of The Attorney General
- Peter C. Harvey, Attorney General
Division of Criminal Justice
- Vaughn L. McKoy, Director
Office of the Insurance Fraud Prosecutor
- Greta Gooden Brown, Insurance Fraud Prosecutor

 

Rachel Sacharow
609-984-1936

 

Division of Criminal Justice -
Office of Insurance Fraud Prosecutor Charges Ocean County Pharmacist with $25,000 Prescription Drug Medicaid Fraud

TRENTON - Division of Criminal Justice Director Vaughn L. McKoy announced that the Division of Criminal Justice - Office of Insurance Fraud Prosecutor has obtained a State Grand Jury indictment charging an Ocean County pharmacist with submitting more than 235 claims to the Medicaid Program for prescription drugs that he did not dispense.

According to Insurance Fraud Prosecutor Greta Gooden Brown, William J. Adamshick, 44, Hemlock Drive, Lanoka Harbor, Ocean County, was charged with Health Care Claims Fraud (2nd degree), Medicaid Fraud (3rd degree). If convicted of both counts, Adamshick faces up to 13 years in state prison and a fine of up to $160,000. The case will also be referred to the Board of Pharmacy for action it may deem appropriate with regard to Adamshick’s pharmacist’s license. Adamshick will be ordered to appear in Ocean County Superior Court for an arraignment and bail hearing on a date yet to be determined.

The indictment alleges that between May 2000 and January 2002, Adamshick, a licensed pharmacist in the State of New Jersey, allegedly submitted more than 235 claims to the Medicaid Program for a prescription pain-reliever drug known as Stadol. An investigation by the Division of Criminal Justice - Office of Insurance Fraud Prosecutor determined that Adamshick fraudulently billed the Medicaid Program more than $25,000 for Stadol prescriptions that were billed for a single Medicaid beneficiary but never dispensed to her.

State Investigator Anthony Iannice and Deputy Attorney General Erik Daab were assigned to the investigation. DAG Daab represented the Division of Criminal Justice - Office of Insurance Fraud Prosecutor before the State Grand Jury.

“Abuse of the Medicaid Program and insurance fraud by persons who hold professional licenses are particularly disturbing crimes,” Insurance Fraud Prosecutor Greta Gooden-Brown said. “Not only do such Medicaid fraud schemes involve theft of tax dollars, they also represent a theft from a program designed to assist persons who can not afford health insurance or health care services. Such cases are a priority for the Office of Insurance Fraud Prosecutor.”

The Medicaid Program, which is funded by the state and federal governments, provides health care services and prescription drugs to persons who may not otherwise be able to afford such services and medicines. The State of New Jersey administers the Medicaid Program through the Division of Medical Assistance and Health Services and, through the Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Section, which investigates both criminal and civil Medicaid fraud and abuse in that program.

Noting that some important cases have begun with anonymous tips from the public, Prosecutor Brown emphasized that individuals can make a difference. “We need people’s information, not their identities. People who are concerned about insurance cheating and have any information about a fraud can call our toll-free hotline at 1-877-55-FRAUD, or visit our Web site at www.NJInsurancefraud.org .”

The indictment, which was handed up to Mercer County Superior Court Judge Charles A. Delehey on April 29, is merely an accusation. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

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