Brother-in-law of disgraced ex-Morris Township school principal indicted in same fraud scheme

Photo: justice.gov/usao-nj
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The brother-in-law of a disgraced former Morris Township school principal has been indicted in connection with the same scheme to defraud public health benefits programs.

Matthew Puccio, 38, of Randolph, has been charged by a federal grand jury with conspiracy to commit health care fraud, Acting U.S. Attorney Rachael A. Honig announced on Tuesday.

Puccio’s brother-in-law, Peter Frazzano, former principal of the Sussex Avenue Elementary School, pleaded guilty in 2019 to conspiring to bilk the New Jersey School Employees’ Health Benefits Program, the New Jersey State Health Benefits Plan, and other plans, of $2.7 million between November 2014 and March 2016.

Over that period, Puccio is alleged to have participated in the same elaborate conspiracy, which involved submitting fraudulent prescriptions for compounded medications to the same public health benefits programs.

Compounded medications, though not approved by federal Food and Drug Administration, may be prescribed by doctors for people with certain conditions. Drugs may be altered, for example, for someone allergic to a specific ingredient, or to deliver a liquid medication for a patient who cannot swallow pills.

Federal authorities say Puccio and others were recruited by marketing companies as sales representatives. Their mission: Obtaining compounded medicines for themselves and others, even if the prescriptions were not medically necessary.

Puccio and an unnamed “Co-Conspirator-1” allegedly targeted individuals covered by health plans with generous reimbursement rates for such medications.

Then they convinced them to obtain prescriptions through two New Jersey physicians roped into the scheme, according to Honig. The doctors’ identities have not been disclosed.

Pharmacies working with Puccio filled the compounding prescriptions, billed the health plans, and paid Puccio a cut of the reimbursements, the acting U.S. Attorney said.

If convicted, Puccio faces up to 10 years in prison and a $250,000 fine, or twice his gross gain or loss from the conspiracy

Frazzano, also of Randolph, must forfeit $270,751 in criminal proceeds and pay restitution of $2,727,292, per his plea deal. His sentencing had been scheduled for Tuesday before U.S. District Judge John Michael Vazquez, but it was adjourned until the fall.

Popular with students– they “slimed” and duct-taped him for reading contests–Frazzano, 48, resigned from the Morris School District in July 2018.

His wife Cristina still works in the district, as a principal at the Thomas Jefferson Elementary School in Morristown. Her sister Carolina, who is married to Puccio, is a guidance counselor at the Frelinghuysen Middle School in Morris Township.

Puccio’s arraignment date has not been set yet.

Honig credited FBI special agents, led by Acting Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation culminating in Puccio’s indictment.

Assistant U.S. Attorneys Emma Spiro and Sean M. Sherman of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit in Newark are representing the government.

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11 COMMENTS

  1. Whatever happened with lead by example? As a parent of a child in the MSD I would like to know why the Board of Ed. and Mackey Pendergast are sitting silently idly by with no comment. Are they waiting for this all to blow over? Is there anyone else out there that is thinking what I’m thinking? How can the spouses of Mrs. Frazzano and Mrs. Puccio (who are sisters by the way) be allowed to be employed under the MSD and therefore their spouses are in direct receipt of the same health care insurance that they stole from? How does this make sense? Why aren’t people outraged? Many they are afraid to speak up. Maybe they worry someone will target their children. It is now time for Mackey and the Board of Ed. to use their positions to remove these people from working with children.

  2. I think it’s time for Super Pendergast to explain at a Board of Ed. Meeting why he gave Cristina Frazzano a promotion AFTER Pete pled guilty in federal court. It’s starting to really look like pay to play to me.

  3. I think some reassignments are in order. How can Mrs. Frazzano run a school? How can students, staff, and parents respect her? WD and TJ are the laughingstocks of the MSD.

  4. When is enough enough? This is a stain on the MSD! Cristina Frazzano and her sister are married to men who conspired (and let’s remember Pete pled GUILTY) to stealing funds from our own district employees when they were bilking the same insurance plan that the MSD employees pay into.
    Shame on them!

  5. Unreal! Mrs. Frazzano’s husband is arrested. Now Mrs. Frazzano’s sister’s husband is arrested. Mrs. Frazzano is a principal at WD and TJ schools! Mrs. Frazzano’s sister works as a guidance counselor at FMS. Thank goodness my children don’t go to the MSD!!!!!

  6. How can the Board of Ed and Superintendent Pendergast allow these Mrs. Frazzano to continue in her role as a principal of not one but TWO schools in the MSD and to allow Mrs. Puccio to continue as a guidance counselor? Please re-assign these staff members so they do not have direct contact with children. Both are married to men who have been indicted by the U.S. Attorney in conjunction with FBI investigations.

  7. How can these wives not know where all the extra money was coming from?? Who would seriously believe that they were unaware? Now there are 2 relatives in the same family connected. Looks fishy to me.

  8. How can these two MSD staff members, one a principal, another a counselor, be GOOD ROLE MODELS for the children in the district? The MSD needs to think about the students!

  9. A lot of people keep saying they can’t believe that she’s not fired. It’s probably a legal issue since she hasn’t been charged with anything. They’ve got to be able to hide her away in a position that’s not so public though. And now there’s another one. Two big black eyes for the district. There’s no way that they didn’t know what the husbands were doing. All of this money suddenly appears out of nowhere, and you’re not questioning it?

  10. Kevin, PLEASE remove the photo from the reading challenge a few years ago. This had NOTHING to do with Mr. Frazzano’s case. I am asking you respectfully to take it down.

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