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For Immediate Release:
For Further Information:
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June 25, 2010

Office of The Attorney General
- Paula T. Dow, Attorney General
Division of Criminal Justice
- Stephen J. Taylor, Director
Office of the Insurance Fraud Prosecutor
- Riza Dagli, Acting Insurance Fraud Prosecutor

Media Inquiries-
609-292-4791
Citizen Inquiries-
609-292-4925

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Hudson County Man Sentenced to State Prison for Participating in Crime Network Dealing in Prescription Pain Pills

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TRENTON - Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced that a Jersey City man was sentenced to state prison today for distributing Percocet pills last year.

According to Acting Insurance Fraud Prosecutor Riza Dagli, Edward Harmon, 50, of Jersey City, was sentenced to three years in state prison by Superior Court Judge Kevin G. Callahan in Hudson County. Harmon pleaded guilty on April 23 to second-degree distribution of narcotics.

In pleading guilty to a criminal accusation, Harmon admitted that on Dec. 21, 2009, he distributed Percocet pills in an amount greater that one ounce.

Harmon’s plea resulted from Operation MedScam, an ongoing investigation by the Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Control Unit and the Jersey City Police Department’s Special Investigation Unit. Since October, more than 32 people, including doctors and pharmacists, have been arrested in the joint investigation, which uncovered a major criminal narcotics network based in Hudson County that distributed thousands of black market prescription pain pills such as OxyContin and Percocet. The network was obtaining fraudulent narcotics prescriptions and filling them at various pharmacies. At the same time, Medicaid was being billed for phony doctor visits and prescription medicines that were never dispensed.

The network allegedly distributed the prescription pain pills throughout Hudson County and other parts of the state, including Bergen, Ocean, Morris and Monmouth counties. A single 30 milligram OxyContin pill, known as a “blue,” typically sells for $10 to $20 on the street, while a 10 milligram Percocet pill sells for $5 to $8.

Detective Kevin Gannon, Sgt. Frederick Weidman and Deputy Attorneys General Debra A. Conrad and Cynthia Vazquez were assigned to the investigation into this case for OIFP’s Medicaid Fraud Control Unit. Deputy Attorneys General Conrad prosecuted the case and represented the Office of the Insurance Fraud Prosecutor at the sentencing.

They were assisted in the investigation by the following members of the Jersey City Police Department's Special Investigation Unit under the supervision of Chief Thomas Comey: Capt. Gary Lallo, Sgt. Anthony Musante, Sgt. Wally Wolf, Detective Wael Shahid, Detective Jeff Guilfoyle, Detective Vincent Disbrow, Detective Hector Marrero, Police Officer Alex Torres, Police Officer Chris Dolan, and Police Officer Erik Infantes.

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 such services and medicines. The State of New Jersey administers the Medicaid program through the Division of Medical Assistance and Health Services and through the Office of the Insurance Fraud Prosecutor’s Medicaid Fraud Control Unit, which investigates both criminal and civil Medicaid fraud and abuse in that program.

Anyone with information about fraud or abuse involving the Medicaid program or Medicaid providers is urged to call the Medicaid Fraud Control Unit toll free at 1-877-55-FRAUD or visit www.NJInsuranceFraud.org. All information received will remain confidential.

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