MORRIS COUNTY — A Morris County pharmacy owner has admitted to orchestrating a multimillion-dollar health care fraud scheme that swindled Medicare out of at least $2.5 million, Acting U.S. Attorney and Special Attorney Alina Habba announced.
Nestor E. Jaime, 37, of Pine Brook in Montville Township, pleaded guilty on November 19, 2025, before U.S. District Judge Katharine S. Hayden to one count of health care fraud.
According to court documents and statements made in federal court, Jaime owned and operated a pharmacy in Paterson and, between December 2019 and December 2021, submitted hundreds of fraudulent claims to Medicare for the antibiotic Dificid. Each prescription carried a reimbursement of more than $4,000.
Prosecutors said the pharmacy never purchased or dispensed the medication.
Stolen Identities and False Provider Numbers
Investigators determined that Jaime used the identities of dozens of Medicare beneficiaries who had never been prescribed the drug. He also misused the unique provider identification numbers of health care professionals to make the fraudulent claims appear legitimate.
Medicare ultimately paid approximately $2.5 million based on the false submissions. Prosecutors said Jaime then spent the illicit funds on luxury vehicles and personal expenses.
Potential Penalties
The charge to which Jaime pleaded guilty carries a maximum sentence of 10 years in federal prison and a $250,000 fine or twice the financial gain or loss linked to the offense.
Investigation
Habba credited the efforts of the U.S. Department of Health and Human Services Office of Inspector General, led by Special Agent in Charge Naomi Gruchacz, and the FBI’s Newark Field Office, led by Acting Special Agent in Charge Stefanie Roddy, for their roles in bringing the scheme to light.
