Scheme Billed State Insurance Programs $50M for Pain and Libido Creams

Thursday, October 18, 2018 | 0

A Cedar Run, New Jersey, woman pleaded guilty this week to defrauding insurance programs by submitting false claims for compounded creams, pain medications and even libido drugs.

Kristie Masucci, 36, served as a recruiter in the fraud scheme, which persuaded teachers, firefighters and other government workers to participate because of their state insurance coverage, according to a bulletin from the U.S. Attorney's office in New Jersey. 

A pharmacy benefits manager would pay the claims, then bill the state. The fraud amounted to more than $50 million in unneeded compounded drugs, authorities said.

Masucci received more than $388,000 in kickbacks for her role in the scheme.

She now faces up to 10 years in prison and a $250,000 fine. Sentencing has been scheduled for Feb. 5.