A New Jersey business owner was sentenced to 87 months in prison and ordered to repay more than $172 million after admitting to running a large Medicare fraud scheme.

A federal judge handed down an 87-month prison term to Aaron Neil Williamsky, 65, of Marlboro, New Jersey, after a conviction tied to an elaborate Medicare fraud conspiracy. The sentence, imposed by U.S. District Judge Michael E. Farbiarz on November 17, 2025 in Newark federal court, included an order for Williamsky to pay more than $172 million in restitution.

Prosecutors say Williamsky pleaded guilty to multiple offenses, including 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. Those pleas came after an investigation that tied him to a sprawling network of durable medical equipment companies and tens of millions in false claims.

“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

According to court documents, Williamsky ran the scheme from about 2015 through 2019 by opening or buying durable medical equipment, or DME, suppliers and then submitting fraudulent Medicare claims for reimbursement. When a company drew scrutiny, prosecutors say he closed it down, moved assets, and set up another company to keep the flow of claims going.

Investigators found Williamsky hid his control of the network by installing others as nominal owners, using straw people to mask his involvement. That arrangement allowed the chain of companies to appear independent on paper while continuing to bill Medicare for equipment that was often unnecessary or not ordered in good faith.

“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. The FBI worked alongside other agencies to trace the money and build the case that led to the guilty pleas.

“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 officials emphasized the real-world cost of funneling program funds away from patients and into criminal schemes.

Prosecutors say Williamsky and co-conspirators contracted marketing firms to make unsolicited calls to elderly patients, offering free orthotic braces as a lure. For each patient who agreed to accept DME, the marketing firms received kickbacks from Williamsky, a practice that the indictment says violated 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. VA investigators noted that the scheme also touched programs and beneficiaries tied to veterans and other federal health care initiatives.

To disguise the payments, prosecutors say Williamsky used sham contracts and phony invoices that labeled kickbacks as legitimate business costs like “business process outsourcing” and “marketing expenses.” A portion of the proceeds was then moved to overseas bank accounts, laundered through shell companies, and invested in foreign real estate to hide the trail.

Senior Counsel Lamparello credited special agents and specialists from several agencies with the investigation, including 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; 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. Those coordinated efforts produced the evidence used at plea and sentencing.

The government’s trial team included prosecutors from the Health Care Fraud and Opioid Enforcement Unit, with Assistant U.S. Attorney Garrett J. Schuman representing the case in court. The court record now reflects both the prison term and the multi-million-dollar restitution order tied to the scheme’s losses.