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For Immediate Release:  
For Further Information:
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November 9, 2006  
Division of Criminal Justice
609-292-4791

Office of The Attorney General
- Stuart Rabner, Attorney General
Division of Criminal Justice
- Gregory A. Paw, Director

Office of the Insurance Fraud Prosecutor
- Greta Gooden Brown, Insurance Fraud Prosecutor

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Newark Pharmacist and Pharmacy Charged with Medicaid Fraud
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TRENTON - Attorney General Stuart Rabner and Division of Criminal Justice Director Gregory A. Paw announced that a Newark pharmacist and the pharmacy he operated have been indicted on charges of health care claims fraud and Medicaid fraud for allegedly submitting phony prescription claims to the Medicaid program.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Ademola T. Salami, 50, of Hillside, a pharmacist licensed in New Jersey, and the pharmacy he owned and operated, Bethel Pharmacy Inc., located at 301 Osborne Terrace in Newark, were indicted yesterday by a state grand jury on charges of second-degree health care claims fraud and third-degree Medicaid fraud.

The indictment alleges that between January 1 and April 10, 2004, Salami, through Bethel Pharmacy, knowingly submitted claims to the Medicaid program for 71 false prescriptions which had a forged doctor’s signature and had not been prescribed by the doctor. At least 12 of the prescriptions were allegedly submitted on forms that had not even been printed at the time the prescriptions were purportedly filled. Salami and Bethel Pharmacy allegedly billed the Medicaid program approximately $15,145 for the phony prescriptions.

Second-degree crimes carry a maximum punishment of 10 years in state prison and a criminal fine of $150,000, while third-degree crimes carry a maximum punishment of five years in state prison and a criminal fine of $15,000. This matter will also be referred to the New Jersey Board of Pharmacy for any action deemed appropriate regarding Salami’s license. The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.

State Investigator Michael Rasar and Deputy Attorney General Deborah Cummis Sandlaufer handled the case for the Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Control Unit, which investigates and prosecutes both civil and criminal Medicaid fraud cases. The Medicaid Program, which is funded by the state and federal governments, provides health care services and prescription drugs to persons who may not otherwise be able to afford them.

The indictment was handed up in Superior Court in Mercer County. The case was assigned to Essex County, where the defendants will be ordered to appear in court to answer the charges on a date to be determined.

“We allege that this pharmacist defrauded the Medicaid program of thousands of dollars that should have been available to assist persons who cannot afford health insurance or health care services,” said Insurance Fraud Prosecutor Brown.

Prosecutor Brown noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline 1-877-55-FRAUD or visiting the Web at www.NJInsuranceFraud.org. State regulations permit an award to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

The Office of Insurance Fraud Prosecutor was established by the Automobile Insurance Cost Reduction Act of 1998. The office is the centralized state agency that investigates and prosecutes both civil and criminal insurance fraud, as well as Medicaid fraud.

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