New Jersey Brothers Sentenced in Multi-Million Dollar Prescription Drug Scheme

John and Christopher Cuffari face prison terms for defrauding health benefits programs in a complex compounded prescription drug scandal.

Morristown, NJ – In a significant blow to health care fraud, John and Christopher Cuffari, two brothers from New Jersey, have been sentenced to prison for their roles in a multi-million dollar scheme that exploited public and private health benefits programs, as announced by U.S. Attorney Philip R. Sellinger.

John Cuffari, 61, from Cedar Grove, received a 17-month prison sentence for defrauding health benefits programs of at least $5.3 million through the billing of medically unnecessary compounded prescriptions. His sentence was delivered by U.S. District Judge Renee Bumb in Camden federal court on January 4, 2023.

His younger brother, Christopher Cuffari, 57, of Little Falls, faced a sterner penalty with a 27-month prison term. He was involved in defrauding programs of $7.89 million. U.S. District Judge Peter Sheridan handed down this sentence on January 3, 2024, in Trenton federal court.

In their confessions, the defendants acknowledged their roles in illicitly obtaining millions from insurance plans through fraudulent reimbursements for compounded medications. This case highlights the broader impact of healthcare fraud, as FBI – Newark Special Agent in Charge James E. Dennehy emphasized the cascading effects such regulations have on patients needing genuine healthcare.

The Cuffari brothers, serving as sales representatives for various marketing companies and compounding pharmacies between November 2014 and September 2017, executed their scheme by targeting insured individuals for unnecessary compounded medications. This included scar creams, wound creams, and metabolic supplements/vitamins. In some instances, they even facilitated cash payments to a New Jersey-based physician for writing these prescriptions.

Their actions, beyond the immediate financial damage, have broader implications for the healthcare system, highlighting the need for continued vigilance against such fraudulent activities.

Both brothers have also been sentenced to three years of supervised release following their prison terms. The investigation, led by the FBI with Special Agent in Charge Dennehy at the helm, culminates in these sentencings, reflecting the ongoing commitment to upholding the integrity of the health care system.

Assistant U.S. Attorney Chelsea D. Coleman of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark, represented the government in this case, underlining the seriousness with which such offenses are treated.

This case serves as a stark reminder of the consequences of defrauding healthcare systems and the relentless efforts of law enforcement to bring perpetrators to justice.