Doctor admits signing phony prescriptions as part of scheme

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Doctor admits signing phony prescriptions as part of scheme. Gray Hall reports during Action News at 7 a.m. on September 23, 2017. (WPVI)

Federal prosecutors say a New Jersey doctor has admitted signing prescriptions for patients he never saw as part of a scheme that cheated the state's health benefits programs and other insurers out of nearly $25 million.

John Gaffney, a 55-year-old Linwood resident whose medical practice is in Margate, pleaded guilty Friday to health care fraud. He faces up to 10 years in prison when he's sentenced Jan. 5.

Authorities say Gaffney sold phony prescriptions for unnecessary compound medications.

The scam ran from January 2015 to April 2016. Authorities say the conspirators persuaded people in New Jersey to obtain the very expensive medications from an out-of-state pharmacy.

Authorities say Gaffney was paid thousands of dollars and received other benefits for helping the scam continue.

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(Copyright ©2017 by The Associated Press. All Rights Reserved.)

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