South Jersey Pharmaceutical Sales Rep Pleads Guilty to Fraud and Money Laundering Charges
A sales executive for a New Jersey pharmaceutical sales company has admitted to charges that he masterminded a years-long prescription drug fraud and money laundering operation that caused health benefits programs and insurers to lose more than $50 million.
William Hickman, a Northfield resident, pleaded guilty to two federal criminal counts, which, combined, could trigger a sentence of up to 30 years. He and his alleged collaborators were charged with:
- Health care and wire fraud — Though prohibited from selling his company’s prescription drugs independently, Mr. Hickman created a side business, Boardwalk Medical LLC, and registered it in his wife’s name. Boardwalk sold compounded pharmaceuticals, which are medications that are mixed by a pharmacist to meet the specific needs of patients. Products included drugs to treat pain, scars, sexual dysfunction and other ailments. According to, U.S. Attorney Craig Carpenito, the defendants committed health care and wire fraud by selling millions of dollars of unnecessary medications which were eventually billed to the state’s benefits system. Mr. Hickman pleaded guilty to one count of health care and wire fraud.
- Money laundering — By taking proceeds from the pharmaceutical fraud scheme and using them to make other purchases, the defendants exposed themselves to money laundering charges. Boardwalk Medical also issued a series of checks each exceeding $10,000, the threshold amount for illegal monetary transactions under federal law. As part of his sentence, Mr. Hickman must forfeit real estate and other assets that he had bought with the illegal profits. Mr. Hickman pleaded guilty to one money laundering count.
- Public corruption — According to prosecutors, public employees in several Jersey Shore towns were caught up in the scheme. Mr. Hickman knew that health insurance plans of many state workers covered the types of products that he was selling and he conspired with employees in these departments to steer patients to him. Charges are pending against a police officer and several fire fighters. Cases might also be brought against teachers and other school employees.
White-collar prosecutions that involve interstate activity are typically litigated in federal court. If you have been accused of a crime involving fraud or some other charge brought by a U.S. Attorney’s office, it is vital to retain a defense attorney who has a successful track record within the federal system.
The Law Offices of David Jay Glassman defends clients in complex federal and state criminal cases. Our founding attorney has 40 years of legal experience, including service as a prosecutor, so he is well versed in federal court procedure and has the ability to take on U.S. Attorneys and their formidable resources. To schedule a consultation, call 866-221-1270 or contact us online. We have offices in Marlton, Newark, New Brunswick and Hackensack for your convenience.