NJ Business Owner Sentenced to Over 7 Years for $172 Million Medicare Fraud Scheme

Aaron Neil Williamsky also ordered to pay full restitution in one of the largest health care fraud cases in New Jersey

A Marlboro, New Jersey business owner has been sentenced to 87 months in federal prison for orchestrating a $172 million health care fraud and money laundering scheme that exploited Medicare billing systems and violated federal anti-kickback laws, according to a statement from Senior Counsel Philip Lamparello.

Aaron Neil Williamsky, 65, was sentenced on November 17, 2025, by U.S. District Judge Michael E. Farbiarz in Newark federal court. In addition to his prison term, Williamsky was ordered to pay over $172 million in restitution, matching the full amount defrauded from the Medicare system.

“As the Defendant admitted in open court, he conspired to steal more than $172 million from the American public by submitting fraudulent doctors’ orders for reimbursement through a web of more than twenty durable medical equipment companies located in New Jersey.” - Senior Counsel Philip Lamparello

Details of the Fraud Scheme

Federal prosecutors say that from 2015 to 2019, Williamsky led a complex operation involving over twenty durable medical equipment (DME) companies, which he either created or acquired to submit false claims to Medicare. When audits or recovery actions loomed, he systematically shut down the companies and replaced them with new ones, shielding the ongoing scheme from detection.

To conceal his direct involvement, Williamsky employed straw owners to falsely represent company leadership while he continued to control operations behind the scenes. This rotation of nominee owners allowed him to operate under the radar of Medicare oversight.

Kickbacks and Money Laundering

Williamsky and his co-conspirators paid illegal kickbacks to marketing firms that cold-called elderly patients, offering them free orthotic braces. In exchange for patient referrals, the marketing companies received per-patient payments—a direct violation of the Anti-Kickback Statute.

To disguise the payments, Williamsky created sham contracts and invoices, falsely labeling the kickbacks as charges for “business process outsourcing” or “marketing expenses.” Authorities also revealed that Williamsky laundered a portion of the fraud proceeds through foreign bank accounts, shell corporations, and overseas real estate, further complicating the financial trail.

Federal Investigation and Prosecution

The case was investigated by multiple federal agencies, including:

• The FBI Newark Division, under Special Agent in Charge Stefanie Roddy

• The Department of Health and Human Services, Office of Inspector General, led by Special Agent in Charge Naomi Gruchacz

• The Defense Criminal Investigative Service, under Christopher Silvestro

• The U.S. Department of Veterans Affairs Office of Inspector General, led by Special Agent in Charge Christopher F. Algieri

Assistant U.S. Attorney Garrett J. Schuman of the Health Care Fraud and Opioid Enforcement Unit prosecuted the case.

This case represents one of the largest health care fraud prosecutions in New Jersey’s recent history. The federal Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally funded programs like Medicare. Violations can lead to significant criminal and civil penalties.

Williamsky’s conviction and sentencing underscore ongoing federal efforts to combat systemic abuse in government-funded health care programs and to hold individuals accountable for large-scale fraud and financial deception.