2 Admit Role in $38 Million Compounding Fraud

The Department of Justice says two owners of Synergy Medical, based in New Jersey, have admitted before a federal judge their roles in a $38 million compounded medication healthcare fraud scheme. A department statement says Samantha Zaretsky, of Wayne, NJ, and Lee Nichols, of Fair Haven, NJ, each pleaded guilty to one count of conspiracy to commit healthcare fraud.

The department says that through their company, the two exploited how health insurance plans process, screen, and pay for compounded drugs, causing tens of millions of dollars of losses to several health insurance plans over two years. Zaretsky and Nichols pocketed millions of dollars through the fraud scheme, the department says.

The conspiracy charge carries a statutory maximum prison sentence of 10 years and a fine of $250,000 or twice the gross gain or loss from the scheme, whichever is greatest.