A Paterson pharmacy owner recently pleaded guilty to health care fraud for submitting $2.5 million in Medicare reimbursements for a diarrhea drug he never dispensed, the U.S. Attorney’s Office announced Monday.
Nestor E. Jaime, 37, of Pine Brook in Montville, agreed to the guilty plea on Nov. 19 in federal court in Newark. Authorities announced the charges in July.
Jaime filed for the reimbursements from December 2019 to December 2021 at his pharmacy, which records show was called Fabio’s Pharmacy and is now closed.
Court papers say he used some of the money to pay personal expenses, including his mortgage and credit card accounts, and $1 million went to lease luxury vehicles and to purchase high-end watches and entertainment.
Federal investigators found Jaime filed approximately 591 false or fraudulent claims to Medicare for the drug Dificid, which doctors prescribe to treat diarrhea. The claims were on the high end of the drug’s price range, about $4,500 per prescription.
If the claims were legitimate, the pharmacy would have needed to dispense at least 11,820 units of Dificid. However, his pharmacy only ever purchased approximately 100 units.
Jaime’s lawyer did not immediately return a message seeking comment.