New Jersey Man Sentenced to 48 Months in Prison for Role in Multi-State Prescription Fraud Ring

ALBANY, NEW YORK - On July 8, 2026, Bryan Otero, age 38, of Wood Ridge, New Jersey, was sentenced to 48 months in prison for conspiring to commit health care fraud and aggravated identity theft.

Otero's sentencing followed the creation of the Trump Administration's Task Force to Eliminate Fraud. The announcement was made by First Assistant U.S. Attorney John A. Sarcone III, Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office for the Federal Bureau of Investigation (FBI), Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and New York State Comptroller Thomas P. DiNapoli.

Otero previously admitted that from April 2023 through October 2024, he worked with Cierra Washington and others to steal the personally identifiable information of Medicaid beneficiaries and use that information to fraudulently obtain prescription medications from pharmacies throughout the Northeastern United States. He further admitted that the conspiracy caused a loss of nearly $4 million to the New York Medicaid program and tens of thousands of dollars 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 in Charge Craig L. 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."

"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," said Naomi D. Gruchacz, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "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 working with our partners to protect program funds, safeguard beneficiary information, and ensure that those who engage in schemes like this are held fully accountable."

To date, the government has successfully recovered over $1.1 million in assets from Otero, which will be applied to restitution to the victims of Otero's crimes. Otero was also ordered to pay an additional $3 million in restitution and serve a term of supervised release of 3 years after he is released from prison.

Cierra Washington and another co-defendant, Raven White, have pled guilty for their roles in the conspiracy. White is scheduled to be sentenced on August 4, 2026, and Washington is scheduled to be sentenced on October 14, 2026.

The FBI, HHS-OIG, and the New York State Comptroller's Office are investigating this case. Assistant U.S. Attorneys Mikayla Espinosa and Nicholas Walter are prosecuting the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ('Fraud Division'). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.