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Guilty Plea for $2.4 million kickback & bribery

Department of Justice

U.S. Attorney’s Office

District of New Jersey


FOR IMMEDIATE RELEASE

Thursday, December 22, 2022

Morris County Pharmacy Employee Admits Participating In $2.4 Million Kickback And Bribery Scheme

TRENTON, N.J. – A pharmacy employee today admitted conspiring to offer and pay bribes and kickbacks in exchange for having prescriptions steered to the Morris County, New Jersey, pharmacy where he worked, U.S. Attorney Philip R. Sellinger announced.

Srinivasa Raju, 51, of Haskell, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiring to violate the federal anti-kickback statute.

Magdalena Jimenez, 58, of Newark, previously pleaded guilty to a parallel bribery and kickback scheme involving the same pharmacy.

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

Raju had various responsibilities at the Morris County pharmacy, including coordinating prescription deliveries and soliciting business. From January 2019 through February 2021, Raju worked with other pharmacy personnel to pay kickbacks and bribes to medical employees in two different doctors’ offices in Jersey City, New Jersey. In exchange, those employees steered numerous, high-value prescriptions to the pharmacy where Raju worked. Raju and his conspirators paid as much as $150 for each prescription and used various tactics to conceal many of those bribe payments. Overall, the pharmacy received over $2.4 million in Medicare reimbursement payments based on prescriptions derived from the kickback scheme.

The conspiracy charge is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing for Raju is scheduled for May 16, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorney Joshua L. Haber, Chief of the Economic Crimes Unit.

Defense counsel:

Raju: Miles Feinstein Esq., Clifton, New Jersey

Jimenez: Peter Guadagnino Esq., New York

U.S. Department of Justice Press Release

Link:

DOJ Press Release

District Court Information

Categories: Anti-Corruption Bribery Department of Justice (DOJ) Updates Enforcement Actions Kickbacks Pleas and Verdicts

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