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Saturday, November 23, 2024

Atlantic County doctor receives prison sentence for healthcare fraud

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Merrick B. Garland, Attorney General | https://www.justice.gov/

Merrick B. Garland, Attorney General | https://www.justice.gov/

An Atlantic County doctor has been sentenced to 15 months in prison for his involvement in a health care fraud conspiracy. Brian Sokalsky, aged 46 and from Margate, New Jersey, had previously pleaded guilty to conspiring to commit health care fraud. U.S. District Judge Edward S. Kiel handed down the sentence on October 29, 2024, at Camden federal court.

The charges stemmed from Sokalsky's role in defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions. The case was announced by Attorney for the United States Vikas Khanna.

Sokalsky was charged alongside pharmaceutical sales representative Vincent Tornari, 50, of Linwood, New Jersey, and former advanced nurse practitioner Ashley Lyons-Valenti, 67, of Swedesboro, New Jersey. Both Tornari and Lyons-Valenti have pleaded guilty to their roles in the conspiracy and are awaiting sentencing.

Court documents revealed that compounded medications were involved in the scheme. These medications are mixed by pharmacists to meet specific patient needs but are not FDA-approved. They can be prescribed when a physician determines an FDA-approved medication does not suffice due to allergies or other reasons.

The conspirators discovered that certain insurance plans reimbursed compounding pharmacies substantial amounts for these medications. Sokalsky agreed to authorize prescriptions for Matthew Tedesco—a former pharmaceutical sales representative who had also pleaded guilty—and others associated with him. In return for authorizing these prescriptions, Tedesco referred approximately 30 patients to Sokalsky’s practice.

Sokalsky billed insurance companies for visits from these referred patients and authorized medically unnecessary medications such as libido creams and excessive quantities with maximum refills without proper follow-up visits or informing patients of changes in medication. Insurance companies paid over $5 million due to fraudulent prescriptions authorized by Sokalsky.

In addition to the prison term, Judge Kiel imposed three years of supervised release on Sokalsky and ordered restitution of $5.13 million.

Attorney Khanna credited several agencies with leading the investigation: FBI’s Atlantic City Resident Agency under Acting Special Agent Nelson I. Delgado; IRS - Criminal Investigation under Special Agent Jenifer L. Piovesan; and U.S. Department of Labor Office of Inspector General under Special Agent Jonathan Mellone.

The government’s representation included R. David Walk Jr., Deputy Chief of the Criminal Division; and Assistant U.S. Attorney Daniel A. Friedman from the Camden office.

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