A Keyport man was sentenced today to state prison for illegally distributing painkillers in Hudson County and conspiring with pharmacy owners to bill Medicaid for the painkillers, according to Attorney General Jeffrey Chiesa. The painkillers were obtained using fraudulent prescriptions.
Jack Kennedy, 30, of Keyport, was sentenced under a plea agreement to three years in state prison, according to the Office of the Attorney General. Kennedy pleaded guilty on March 16, 2010 to an accusation charging him with second degree conspiracy to commit health care claims fraud, second degree distribution of a controlled dangerous substance, and third degree distribution of a controlled dangerous substance within 1,000 feet of a school property before Superior Court Judge Kevin G. Callahan in Passaic County. The plea agreement called for a sentence in the third-degree range.
By pleading guilty, Kennedy admitted that on numerous occassions between Jan. 1 and Oct. 19, 2009, he filled medically unnecessary or otherwise fraudulent prescriptions and conspired with the pharmacies to bill Medicaid for filling those prescriptions. According to the Office of the Attorney General, Kennedy sold 60 Percocet pills to a confidential informant on Aug. 6, 2009 within 1,000 feet of St. Paul of the Cross school in Jersey City.
Acting Insurance Fraud Prosecutor Ronald Chillemi noted that the charge to which Kennedy pleaded guilty is the result of Operation MedScam, an investigation by the Office of the Insurance Fraud Prosecutor's Medicaid Fraud Control Unit and the Jersey City Police Department's Special Investigation Unit.
Deputy Attorney General David Noble and Detective Kevin Gannon were assigned to the case.