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National Insurance Crime Bureau

Former Police Officer Admits Role in Multimillion-Dollar Compounded Prescription Drug Scheme

Department of Justice

U.S. Attorney’s Office

District of New Jersey

FOR IMMEDIATE RELEASE

Monday, March 8, 2021

Former Police Officer Admits Role in Multimillion-Dollar Compounded Prescription Drug Scheme

NEWARK, N.J. – A former police officer with the North Brunswick police department today admitted his role in a multimillion-dollar scheme that defrauded state health benefits programs through the submission of medically unnecessary prescriptions for compounded medications, Acting U.S. Attorney Rachael A. Honig announced.

Daniel Passafiume, 45, of Monroe, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiring to commit health care fraud.

According to documents filed in this case and statements made in court:

Between January 2014 and November 2016, Passafiume and a conspirator, identified as CC-1 in the information, marketed certain prescription “compounded medications,” including vitamins and pain creams, to beneficiaries of New Jersey state insurance plans, including the State Health Benefits Program (SHBP).

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