Margate Prescription Drug Scam Update

Margate Gaffney Prescription Scam
Prescription Scam.

Remember that prescription drug scandal from back in 2017? Here’s the latest:

Two more just plead guilty. Ringleader William Hickman and his wife socked away $53 million in that scam. $25 million in property.

The City of Margate was fingered early. Health costs for the municipality went from a few hundred thousand in prescription costs, to $3 million in prescription drug costs, says WPG Radio host, John DeMasi.

Margate’s Dr. John Gaffney plead guilty in Sept of 2017. Three years later, Gaffney is still practicing.

‘No NJ State board has come after Gaffney’ says DeMasi.

Listen: WPG Radio John DeMasi: Prescription Scam Update. June 22, 2020.


In 2017, Margate’s Dr John Gaffney plead guilty to conspiracy to commit health-benefits fraud. From what we understand, he’s still practicing.

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.

An over-the-top health plan coupled with lax oversight allowed for a scam like this to grow.

Hard to believe no one noticed the spike in health insurance costs. One more reason why County Exec Denny Levinson says towns should rotate their auditors every three years.

How to learn more? Join a local taxpayers or homeowners association. See: Margate Homeowners Association.

Margate firefighter pleads guilty in prescription fraud case.

From the Daily Mail:

John Gaffney, a doctor based in Margate, pleaded guilty in 2017 to health care fraud for signing bogus prescriptions for patients he never saw. He faces up to 10 years in prison.

Also indicted was Ventnor police officer Thomas Schallus, and firefighters John Sher, Thomas Sher.

Those accused of defrauding New Jersey state health benefits programs and other insurers out of millions by submitting fraudulent claims for unnecessary medical prescriptions. 

Exploited employees who had insurance that covered expensive medications such as pain, scar, anti-fungal and libido creams, which could be reimbursed to the tune of thousands at a time.

3 thoughts on “Margate Prescription Drug Scam Update”

  1. 3 years later...

    The big winners are the low level participants who got the kickbacks, escaped prosecution, and continue to collect generous wages, benefits and pensions.

    Cops, firefighters and teachers who got envelopes of cash by fraud – they’re still working. You interact with them every day. It’s common knowledge who they are, but no one talks about it publicly.

    There were supposedly hundreds of participants but after three years, only a few sacrificial lambs are getting sentenced, the rest continue to hold their jobs, and they got some nice money on the side.

  2. Anthony D’Amato

    I hope a couple of them testify against others who have not been caught yet.

    They need to do this. To save their pride. What little they have left.

    These people that were making so much money a year. All that greed calls them to make even more money.

  3. How is it possible that the Margate elected officials didn’t get busted. Of course they were involved and of course they profited.

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