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For Immediate Release:  
For Further Information:
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March 2, 2007   

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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Former Owner of Monmouth County Residential Health Care Facility Sentenced in Medicaid Fraud Kickback Scam

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TRENTON - Attorney General Stuart Rabner and Criminal Justice Director Gregory A. Paw announced that the former owner of a Monmouth County residential health care facility was sentenced today for her role in a prescription kickback scheme that netted more than $4,300 as a result of directing residential health care facility residents to fill prescriptions at a Belmar pharmacy.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Shirley Welch, 59, of Freehold, was ordered by Superior Court Judge Patricia Del Bueno Cleary in Monmouth County to pay more than $4,400 in fines and restitution. The sentence followed Welch’s Oct. 16 guilty plea to theft by deception.

At the guilty plea hearing, Welch, the former owner and administrator of Pineland Rest Home in Englishtown, admitted that between Jan. 1, 2000 and Feb. 20, 2002, she illegally accepted cash from the owner/operator of the now defunct Belmar Hometown Pharmacy. Welch received the kickbacks in exchange for directing Pineland Rest Home residents to fill their prescriptions at the pharmacy.

Prosecutor Brown noted that the Belmar Hometown Pharmacy, formerly located on Main Street, Belmar, was owned by Michael Stavitski, who was prosecuted by the Office of Insurance Fraud Prosecutor - Medicaid Fraud Control Unit. Stavitski pleaded guilty to health care claims fraud and was sentenced on June 18, 2004 to seven years in state prison. He was ordered to pay $1.1 million in restitution and penalties.

State Investigator Anthony Iannice and Deputy Attorney General Sherry Wilson coordinated the investigation. Wilson represented the Office of Insurance Fraud Prosecutor at the sentencing.

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