New Jersey physician sentenced, to pay $5M+ for fraud scheme

A physician in Margate, N.J., was sentenced to 15 months in prison and must pay more than $5 million for his role in a scheme to defraud payers by submitting claims for medically unnecessary prescriptions. 

Brian Sokalsky, MD, authorized prescriptions for former pharmaceutical sales representative Matthew Tedesco in June 2017. In exchange for the authorization, Mr. Tedesco referred approximately 30 patients to Dr. Sokalsky's new medical practices, according to an Oct. 30 news release from the Justice Department. 

Dr. Sokalsky authorized medically unnecessary medications, such as libido creams for young women, including excessive quantities with the maximum number of refills.  He also authorized prescriptions for the medications for existing patients of his practice to financially benefit Mr. Tedesco and encourage him to refer more patients to his new practice.

Dr. Sokalsky pleaded guilty for his role in the scheme in March 2023. In addition to the prison term, he was sentenced to three years of supervised release and ordered restitution of $5.13 million.

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