VENTNOR – A Ventnor firefighter who admitted to defrauding the New Jersey State Health Benefits program in a drug compounding scheme has resigned his position with the Ventnor City Fire Department.
At their meeting on Dec. 27, the Ventnor Board of Commissioners approved a resolution accepting Corey Sutor’s resignation effective Dec. 12, the day he pleaded guilty in U.S. District Court in Camden. Board members provided no comments on the resolution, but Mayor Beth Holtzman on Dec. 12 said Sutor had been suspended without pay and was facing termination by the City of Ventnor.
Sutor, 37, of Egg Harbor Township, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to conspiracy to commit health care fraud.
Sutor has worked for the Ventnor Fire Department since Aug. 20, 2007 and his salary was $101,341. He was assigned to Firehouse No. 1. According to city officials, he will receive no benefits or backpay and his pension benefits will be determined by the state.
According to a press release, Sutor was one of the owners of an unnamed company formed to market prescription compounded medications. From May 2015 through February 2016, Sutor and others associated with the company persuaded others to obtain very expensive and medically unnecessary compounded medications, including pain, scar, and antifungal creams, as well as vitamin combinations. The conspirators were reimbursed for thousands of dollars for a one-month supply by the New Jersey State Health Benefits Program, which provides medical coverage for municipal and school employees.
He is the second Downbeach area firefighter to be involved in the conspiracy. Michael Sher, who worked for the Margate City Fire Department, also admitted to having a role in the fraud.
The scheme resulted in the state paying $2 million in claims for compounded medications for public employees. Sutor received $150,398 in gross proceeds for his role in the scheme. As part of his plea agreement, Sutor must forfeit these criminal proceeds and pay restitution of at least $2,092,791.
He faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 12, 2019.
