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Ex.-N.J. firefighter sentenced for role in $50M prescription drug scheme

John Sher pleaded guilty to conspiracy to commit healthcare fraud; he served with the Margate Fire Department

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By Nicolas Fernandes
nj.com

MARGATE, N.J. — A former firefighter has been sentenced to 37 months in prison for participating in a $50 million prescription medication fraud, U.S. Attorney Philip R. Sellinger said.

John Sher, 40, of Margate, pleaded guilty to conspiracy to commit health care fraud in July 2022, admitting to being one of six involved in the conspiracy, prosecutors said.

Former pharmaceutical salesman William Hickman, of Northfield, was the leader of the scheme and recruited and compensated government employees, including Sher, to receive unnecessary compound prescription medications, officials said.

Sher, who was employed by the Margate Fire Department at the time, recruited others into the scheme, causing a pharmacy benefits administrator to pay out millions of dollars in claims, authorities said. He directly received $327,897 for his involvement, according to prosecutors.

As part of his sentence, Sher is ordered to pay $2.77 million in restitution and $327,897 in forfeiture and is also subject to two years of supervised release, the U.S. Attorney’s Office said.

Hickman pleaded guilty to defrauding New Jersey health benefits programs and other insurers out of more than $50 million in June 2020 as the leader of the conspiracy, officials said.

Another conspirator, Christopher Broccoli, 50, of West Deptford, pleaded guilty to conspiracy to commit health care fraud along with Sher in 2022, authorities said.

Sher’s brother Michael pleaded guilty to defrauding New Jersey health benefits programs and other insurers out of more than $7 million in 2018, officials said. His other brother Thomas was convicted of conspiracy to commit health care fraud and three counts of health care fraud in Sept. 2022, according to prosecutors.

Both brothers were firefighters for the Margate Fire Department when charged. Broccoli was a Camden firefighter when charged.

Brian Pugh, of Absecon, was sentenced to 37 months in Dec. 22 on a conviction of conspiring to defraud a health care benefits program, the U.S. Attorney’s Office said.

Thomas Schallus, a former Ventnor police officer from Northfield, was sentenced to six months of home confinement and three years probation in Dec. 2022, according to the Press of Atlantic City.

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