Healthcare

New Jersey Doctor Sentenced For Role In $5 Million Compound Medication Fraud Scheme

Healthcare
Source: TFP File Photo

An Atlantic County, New Jersey, doctor has been sentenced to 15 months in prison for his involvement in a healthcare fraud scheme that bilked insurers out of over $5 million.

Dr. Brian Sokalsky, 46, pleaded guilty to conspiring to commit healthcare fraud. He admitted to authorizing medically unnecessary prescriptions for compounded medications in exchange for patient referrals and financial gain.

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Sokalsky conspired with a pharmaceutical sales representative and others to exploit the high reimbursement rates for certain compounded medications. These medications, while not FDA-approved, are sometimes prescribed for patients with specific needs. However, Sokalsky authorized prescriptions for these expensive medications even when they were not medically necessary.

He prescribed libido creams for young women, authorized excessive quantities with maximum refills, and changed medication formulations without seeing patients or informing them, all to benefit financially and generate more referrals for his practice.

In addition to his prison sentence, Sokalsky was ordered to pay $5.13 million in restitution and serve three years of supervised release.

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Two other individuals involved in the scheme, Vincent Tornari and Ashley Lyons-Valenti, have also pleaded guilty and await sentencing.

This case was investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Office of Inspector General.

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