Warren Doctor Admits Buying, Selling Cancer Medication For Profit

WARREN, NJ — A doctor from Warren admitted to using his medical license – and allowing others to use his medical license – to buy prescription cancer medication claiming it was to treat his patients but instead he used it for the purpose of selling them for profit, U.S. Attorney Philip R. Sellinger announced.

Joel Lerner, 62, of Warren, a board-certified podiatrist and operator of a medical supply group purchasing organization, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to unlawfully selling prescription oncology medications.

While working in his medical practice’s offices in Springfield and Union, Lerner was recruited by someone who owned a pharmacy and also owned and operated two businesses that were wholesale distributors of prescription drugs, according to documents filed in this case and statements made in court.

Lerner used his medical license – and allowed others to use it – to purchase expensive prescription drugs in return for commissions, according to authorities.

The drugs Lerner purchased were primarily, cold-chain biologic infusion medications that typically are used to treat cancers, macular degeneration, and autoimmune diseases.

"By recruiting and using Lerner and his medical license to purchase the drugs, these individuals were able to obtain prescription drugs from the pharmaceutical manufacturers’ authorized distributors that they would not otherwise have been permitted to purchase. They were then able to sell them at a profit through their two businesses," according to the U.S. Attorney's Office.

When purchasing the drugs, Lerner and two others made numerous false and misleading representations to the pharmaceutical manufacturers and authorized distributors, including that Lerner purchased the drugs to use to treat his patients, and that the drugs would not be resold or redistributed, according to authorities.

However, none of the drugs were given to Lerner’s patients and were ultimately sold to customers of the two businesses for a profit, according to authorities.

Lerner sold and transferred the prescription drugs in the name of his group purchasing organization to try and hide the fact that he was illegally buying and selling prescription drugs purchased under his medical license, said Sellinger.

The scheme ran from December 2014 through November 2018, during which more than $1.2 million in prescription drugs were purchased in Lerner’s name and using his medical license.

The sale of prescription drugs purchased by a healthcare entity is punishable by a maximum of three years in prison and a $10,000 fine. In his plea agreement, Lerner also agreed to make

restitution for the full amount of any loss resulting from his offense. Sentencing is scheduled for July 18.