Former Warren County Businessman Sentenced to Three Years in Prison for Fraudulently Obtaining $1.8 Million in COVID-19 Loans Meant for Small Businesses
CAMDEN, N.J. – A former employee of a Mount Holly, New Jersey, medical practice was sentenced today to 30 months in prison for selling fraudulent prescriptions for controlled substances, U.S. Attorney Philip R. Sellinger announced.
Jose Colon, 37, of Sicklerville, New Jersey, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with distribution of controlled substances. Judge O’Hearn imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Colon, who is not a medical provider, used the identities of doctors with whom he worked to make and sell fraudulent prescriptions for controlled substances, including Oxycodone, Adderall, Percocet, and Xanax. Colon sometimes met his customers in person with a prescription pad to sell the fraudulent prescriptions for cash. He also submitted fraudulent prescriptions electronically to pharmacies in exchange for electronic payments from his customers. Colon advised his customers on how to fill the fraudulent prescriptions, including instructing them to wait until the medical practice was closed so that Colon would be able to answer any phone calls from the pharmacies questioning the validity of the fraudulent prescriptions.
In addition to the prison term, Judge O’Hearn sentenced Colon to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the FBI Newark Health Care Fraud Task Force, whose members include the Galloway Township and Middle Township Police Departments, and the Cape May County Prosecutor’s Office, for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.