It’s the multimillion-dollar health insurance and prescription fraud case that quadrupled Margate employee health care expenses. It’s been going through the courts for about 5 years, and it’s back in the news.
On July 28, two New Jersey firefighters, one of them from Margate, plead guilty to defrauding state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions. They each face up to 10 years in prison.
Margate Firefighter John Sher, 40, plead guilty to one count of conspiracy to commit health care fraud in Federal Court in Camden. Sentencing for Sher is scheduled for Dec. 5, 2022.
John Sher received $327,897 in the scam. He faces 10 years in prison and a $250,000 fine.
From BreakingAC.com: Sher was among those indicted back in March of 2019. Sher’s brother Margate Firefighter Michael Sher previously plead guilty in the case. Another brother, Thomas Sher — also a Margate firefighter, goes to trial next month.
From @dahamr
Municipal employees have “golden” benefits. Family plan health benefits cost $32,000 in 2016. If municipal workers had to pay for a portion of the compounded creams and lotions, it wouldn’t have happened.
In February 2018, Ted Greenberg of NBC 10 reported: massive, year over year spike in the cost of prescriptions filled by Margate city workers. Costs quadrupled in just one year. (see video below)
- 2014: $714,935
- 2015: $3,351,726
Downbeach taxpayers were financially harmed when doctors wrote prescriptions for expensive, un-needed compounds. Insurance companies paid out thousands through premium, public employee insurance programs.
- Michael Sher, former Margate firefighter – $1.7 mil.
- Mike Pepper, former Atlantic City firefighter – $113,627.00
- Robert Madonna, former Margate mortgage consultant – $179,370.00
- Corey Sutor, former Ventnor firefighter – $150,397.79
- Ed Sutor Jr: former Ventnor firefighter – $335,551.81
- Thomas Schallus, former Ventnor police officer.
How did they respond in 2016? Margate Public Safety Commissioner; John Amodeo, Mayor Michael Becker, Commissioner of Finance; Maury Blumberg and the Margate CFO.
Listen to WPG’s John Demasi from 2020:
Dr. John Gaffney, 55, a former Margate doctor. Gaffney admitted that he signed fraudulent prescriptions for more than 200 patients, including teachers, police and firefighters, resulting in fraud of more than $24 million.
“Doctors play a trusted and vital role in the American healthcare system. John Gaffney broke this trust when he wrote and accepted payment for prescriptions that were medically unnecessary,” said Michael Mikulka, Office of Inspector General.
State and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications. It caused the pharmacy benefits administrator to pay out millions of dollars for medically unnecessary compound prescription medications for individuals they recruited into the scheme.
Former Margate Firefighter Admits Health Care Fraud Conspiracy Targeting State Health Benefits Programs
NBC10 learned prescription drug costs quadrupled in just one year for a group of South Jersey workers.
We usually praise first responders as special people who act responsible and care for other people! This is a real shame . I guess three bad apples fell from that tree! The so called doctor is a disgrace!
Several people were asleep at the wheel here, any fund administrator who don’t catch something like this in the first quarter of the scam is either involved or is just not doing their job.
Margate has a very questionable government team. They never seem to have their eyes on the right ball.
The “State Health Benefits” program is monitored and controlled by Trenton. No data in regard to health benefits are transferred to participating towns. The lack of oversight falls on the shoulders of the state health administrators, not the towns that fell victim to a few “Bad Apples”. I really wish people would take the time to research and learn the facts before making comments that are false.
I believe Maury Blumberg was the commissioner who fell asleep at the wheel with Lisa the City financial person (who has a husband who is a firefighter)
Coincidence?
Time to clean house. get rid of scammers in local government and city paid scammers!
With second homeowners unable to vote, it’s up to locals to make this happen with their votes — and despite whining and endless unsubstantiated allegations of grift on this site, this group of elected leaders get re-elected.
The “State Health Benefits” program is monitored and controlled by Trenton. No data in regard to health benefits are transferred to participating towns. The lack of oversight falls on the shoulders of the state health administrators, not the towns that fell victim to a few “Bad Apples”. I really wish people would take the time to research and learn the facts before making comments that are false.
Very well said, Peter. It’s far easier for folks on here to post endless allegations of crimes being committed by Margate leaders, without any hint evidence, or even proof of an investigation – all wrapped up in innuendo masquerading as facts.
I’m not a fan of the current leaders by any stretch – I think their issue is competence, not grift.
A big majority of “locals” are senior citizens and are not interested in running against the people in government.
The year round transplants also just want to live out their lives. They didn’t move to Margate to become a mayor or commissioner. So, the three run unopposed.
The longer someone is in a government position, the more complacent they become.
The decisions being made in Margate do not seem in line with what I believe the residents want, whether they are locals or second home owners.
They do road diet and build bay boardwalks, Bocca and Venturas, but they won’t put a damn bike rack at the bulkheads. Where I get on the beach, there’s a bike rack that holds two bikes when on a typical Saturday there are forty bikes there.
I get the beach front owners may not want bike racks on the street outside their house but that’s like buying a house on a golf course and complaining that your house gets hit with golf balls.
Anyway, I believe a third party audit needs to be done to see how deep this rabbit hole goes.
That’s a great idea!