Bryan Otero, 38, of Wood Ridge, New Jersey, was sentenced on July 8 to 48 months in prison for conspiring to commit health care fraud and aggravated identity theft. The sentencing follows his admission of involvement in a multi-state scheme that used stolen Medicaid beneficiary information to obtain prescription medications fraudulently across the Northeastern United States from April 2023 through October 2024.
Otero’s sentencing was announced by First Assistant U.S. Attorney John A. Sarcone III, Federal Bureau of Investigation Special Agent in Charge Craig L. Tremaroli, U.S. Department of Health and Human Services Office of Inspector General Special Agent in Charge Naomi Gruchacz, and New York State Comptroller Thomas P. DiNapoli. Otero admitted that the conspiracy caused nearly $4 million in losses to the New York Medicaid program and tens of thousands of dollars in losses to pharmacies.
“Healthcare fraud drains critical taxpayer resources and undermines care for the patients who need it most,” said First Assistant U.S. Attorney John Sarcone, “Under the leadership of President Trump and the Department of Justice’s Fraud Division, my office, alongside our partners, remains committed to holding accountable individuals like Mr. Otero, who attempt to defraud American taxpayers and prey on patients within our healthcare system.” FBI Special Agent Tremaroli said, “Healthcare fraud is not a victimless crime. It targets a vulnerable population demographic that relies on the assistance it provides. It also drives the cost of healthcare up for every American. This sentence proves the FBI will not stand by while fraudsters like Mr. Otero take advantage of invaluable government programs designed to help Americans who need it most.”
Naomi D. Gruchacz said, “This conspiracy was built on the theft and misuse of vulnerable beneficiaries’ personal information, and it inflicted significant losses on a program designed to deliver essential care.” She added, “Identity theft-based prescription fraud not only undermines public trust in Medicaid but also puts patients at risk when their information is exploited for criminal gain… HHS OIG remains committed …to protect program funds…and ensure that those who engage in schemes like this are held fully accountable.” To date, over $1.1 million has been recovered from Otero; he must pay an additional $3 million restitution and serve three years supervised release after prison.
Co-defendants Cierra Washington and Raven White have pled guilty; White is scheduled for sentencing August 4 while Washington’s sentencing is set for October 14.
The case is being investigated by the FBI, HHS-OIG, and New York State Comptroller’s Office with prosecution by Assistant U.S Attorneys Mikayla Espinosa and Nicholas Walter.
The U.S Attorney for the Northern District of New York supports community wellness initiatives across its offices located in Albany, Binghamton, Plattsburgh, and Syracuse; covers more than thirty thousand square miles across thirty-two counties with about 3.4 million residents; employs approximately fifty assistant attorneys plus support staff; prosecutes federal criminal cases as part of its role within the United States Department of Justice, according to the official website.