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Tipsheet

New Jersey Business Owner Sentenced to 87 Months for $172M Medicare Fraud

New Jersey Business Owner Sentenced to 87 Months for $172M Medicare Fraud
AP Photo/Andrew Harnik

A New Jersey business owner was sentenced to 87 months in prison for conspiring to defraud Medicare of $172 million, committing money laundering, and paying kickbacks and bribes in violation of the Anti-Kickback Statute, Senior Counsel Philip Lamparello announced.

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U.S. District Judge Michael E. Farbiarz imposed the sentence on Aaron Neil Williamsky, 65, of Marlboro, New Jersey, in Newark federal court on November 17, 2025.  Williamsky was also ordered to pay more than $172 million in restitution.

Williamsky previously pleaded guilty to conspiracy to commit health care fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to violate the federal Anti-Kickback Statute.   

“As the Defendant admitted in open court, he conspired to steal more than $172 million from the American public by submitting fraudulent doctors’ orders for reimbursement through a web of more than twenty durable medical equipment companies located in New Jersey. The sentence Williamsky received reflects the seriousness of his crimes.  Together with our law enforcement partners, this Office will continue to investigate and prosecute people who engage in fraud at the expense of American taxpayers.”

- Senior Counsel Philip Lamparello

From 2015 to 2019, Williamsky led and organized a fraud scheme in which he opened or purchased durable medical equipment (“DME”) supply companies, submitted fraudulent claims to Medicare on behalf of those companies, closed the companies one-by-one to avoid Medicare audits and recoupment, and then opened or purchased new DME companies.  

“Williamsky’s sentence of more than 7 years reflects the severity of his crime and reemphasizes the FBI’s commitment to holding fraudsters accountable,” said Special Agent in Charge of FBI Newark, Stefanie Roddy.

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He concealed his ownership interest in this web of more than twenty DME companies by employing others to serve as “nominee,” or straw owners.

“This defendant committed an egregious amount of durable medical equipment fraud. Rampant schemes like his jeopardize the availability of federal health care program funds intended to support millions of beneficiaries,” said Special Agent in Charge Naomi D. Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with our law enforcement partners to bring those to justice who prioritize greed over patient care.”  

Williamsky and his co-conspirators hired marketing companies to place unsolicited calls to elderly patients, offering them free orthotic braces.  In exchange for each patient who agreed to accept DME, Williamsky paid kickbacks to the marketing companies, in violation of the federal Anti-Kickback Statute.

“This sentencing demonstrates that fraudsters who target VA programs and services will be found and held accountable,” said Special Agent in Charge Christopher F. Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG will continue to work with our law enforcement partners to halt schemes that divert funds from our nation’s deserving veterans.”

 To conduct the scheme, Williamsky used sham contracts and invoices that falsely characterized kickbacks he paid as “business process outsourcing” and “marketing expenses.”  To evade detection and avoid taxes, Williamsky transferred a portion of the fraud proceeds to overseas bank accounts, where the funds were laundered through shell corporations and foreign real estate holdings.

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Senior Counsel Lamparello credited special agents and specialists of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and the Department of Defense, Defense Criminal Investigative Service, under the direction of Christopher Silvestro; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Garrett J. Schuman of the Health Care Fraud and Opioid Enforcement Unit.

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