NEWARK, N.J. – James D. Feeley, 46, of Grafton, Ohio, and owner of several marketing companies, has admitted to his involvement in a major health care fraud and kickback conspiracy, as announced by U.S. Attorney Vikas Khanna.
Feeley pleaded guilty to charges of conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud before U.S. District Judge Esther Salas in Newark federal court.
From June 2017 to September 2020, Feeley engaged in a fraudulent scheme involving pharmacies, telemedicine companies, and doctors, resulting in false claims to health care benefit programs like Medicare and TRICARE. His marketing companies aggressively promoted expensive medications to Medicare and TRICARE beneficiaries, often without medical necessity and concealing the prescribing doctor’s identity.
Kickbacks were paid to telemedicine companies, which in turn paid doctors for prescribing these medications, often without proper medical evaluation. Feeley’s companies then directed these prescriptions to specific pharmacies, including Apogee Bio Pharm LLC, in return for kickbacks and bribes. The total fraudulent claims exceeded $24 million, with Feeley’s companies receiving over $6 million in kickbacks.
Feeley and his companies received kickbacks and bribes totaling more than $6 million in exchange for prescription referrals to Apogee Bio Pharm LLC, a pharmacy located in Edison, New Jersey. The principals of Apogee – William Welwart, Ethan Welwart, and Gary Kaczka – are charged with health care fraud and related offenses in a separate indictment.
Mark Belter, Feeley’s business partner, has already pleaded guilty to similar charges. The principals of Apogee, William Welwart, Ethan Welwart, and Gary Kaczka, are facing charges in a separate indictment, while former Apogee president Elan Yaish has pleaded guilty to conspiracy to violate the anti-kickback statute.
Feeley faces a maximum of five years in prison for each charge, along with fines, restitution, and penalties. His sentencing is scheduled for July 9, 2024.