Local Business Owner Sentenced In $172M Medicare Fraud Scheme

Photo courtesy ChatGPT

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NEWARK — A Monmouth County business owner was sentenced to more than seven years in federal prison for orchestrating a massive Medicare fraud scheme that drained more than $172 million from taxpayer-funded health care programs, federal officials announced.

Aaron Neil Williamsky, 65, of Marlboro, was sentenced to 87 months behind bars by Michael E. Farbiarz during a hearing in Newark federal court. Williamsky was also ordered to repay more than $172 million in restitution.

Prosecutors said Williamsky pleaded guilty to multiple federal charges, including conspiracy to commit health care fraud, wire fraud, money laundering, and violations of the Anti-Kickback Statute.

Federal authorities said the scheme spanned from 2015 through 2019 and relied on a constantly shifting network of more than 20 durable medical equipment companies based in New Jersey. Investigators said Williamsky secretly controlled the companies while placing straw owners on paper, allowing him to submit fraudulent Medicare claims before shutting down each company to avoid audits and reopening under new names.

To generate claims, prosecutors said marketing firms were paid to place unsolicited calls to elderly patients, offering free orthopedic braces. Those payments were disguised through fake contracts and invoices to conceal illegal kickbacks, authorities said.

Investigators also said Williamsky moved a portion of the illicit proceeds overseas, laundering funds through shell corporations and foreign real estate to avoid detection and taxes.

Senior Counsel Philip Lamparello said the sentence reflects the seriousness of the crime and sends a message that large-scale health care fraud will be aggressively prosecuted.

The investigation involved multiple agencies, including the Federal Bureau of Investigation Newark Division, the Department of Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, and the Department of Veterans Affairs Office of Inspector General.

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