New Jersey

By: Richard L. Smith 
 

Two North Jersey men have admitted their roles in a massive prescription drug diversion operation that involved the fraudulent purchase and resale of millions of dollars’ worth of specialty medications, according to a press release issued by the U.S. Department of Justice.

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Federal officials said Frank Incognito, 46, of Englishtown, and Stephen Corba, 50, of Farmingdale, pleaded guilty before Susan D. Wigenton in federal court to conspiracy related to the unlawful resale of high-cost medications originally purchased by healthcare providers.
 

Corba entered his guilty plea on Wednesday, while Incognito previously pleaded guilty on February 18, 2026.
 

According to court filings and statements made during the proceedings, Corba operated a wholesale drug distribution business through New Jersey corporations based in Sewaren. 

Incognito served as the company’s operations manager. 

Authorities said the two men worked with several doctors and others to obtain expensive prescription drugs that they otherwise could not legally acquire.

 

Investigators said the medications were purchased through doctors’ medical practices using the physicians’ licenses, under the representation that the drugs would be used to treat their own patients. Instead, officials said the medications were diverted and resold for profit.
 

The drugs involved in the scheme included costly “cold-chain” biologic infusion medications commonly used to treat serious conditions such as cancer, macular degeneration, and autoimmune diseases.

 

Prosecutors said the conspirators made false and misleading claims to pharmaceutical manufacturers and authorized distributors, including statements that the medications were intended for legitimate patient care and would not be resold. 

In reality, authorities said none of the drugs were used to treat patients and were instead sold to customers connected to Corba and Incognito.
 

Federal officials said the scheme operated from June 2012 through January 2019 and involved the purchase and resale of more than $47.5 million worth of prescription medications.

 

Three physicians — Anise Kachadourian, Jon Paul Dadaian, and Joel Lerner — have also previously pleaded guilty for their involvement in the operation.
 

Corba and Incognito each face a maximum penalty of five years in federal prison and a $250,000 fine. 
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As part of their plea agreements, both men also agreed to pay restitution covering the full amount of losses linked to the scheme.

 

Incognito is scheduled to be sentenced on June 23, 2026, while Corba’s sentencing is set for July 8, 2026.