Newark, N.J. – The U.S. Attorney’s Office has announced that Nestor E. Jaime, 37, of Pine Brook, New Jersey, pleaded guilty to a sweeping health care fraud scheme that siphoned millions from Medicare. This is a case of New Jersey Pharmacy Fraud involving significant deceit.

Between December 2019 and December 2021, Jaime operated a pharmacy in Paterson, New Jersey, where he submitted hundreds of false claims for the high‑reimbursement drug Dificid—valued at more than $4,000 per prescription. The pharmacy’s fraudulent activities are an example of New Jersey Pharmacy Fraud, as it never purchased or dispensed the medication.

To disguise the fraud, Jaime used providers’ unique identification numbers on claims, making it appear as though legitimate prescriptions had been written for dozens of Medicare beneficiaries. The scheme netted him at least $2.5 million, which he spent on luxury vehicles and personal expenses obtained through this New Jersey Pharmacy Fraud.

The charge of health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Federal investigators from the Health and Human Services Office of Inspector General and the FBI Newark Field Office uncovered the scheme of New Jersey Pharmacy Fraud, leading to Jaime’s guilty plea before U.S. District Judge Katharine S. Hayden.

This case highlights the growing threat of pharmacy‑based Medicare fraud, where false claims not only drain taxpayer funds but also erode trust in the health care system.