Two rings of alleged drug dealers, including several doctors and pharmacists, were arrested in connection with the black-market distribution in New Jersey of thousands of prescription pain pills, many of which were paid for through Medicaid and private insurance.

A total of 13 people were arrested between Oct. 19 and 20 as part of Operation MedScam, a year-long joint investigation that uncovered a criminal network in Hudson County, allegedly obtaining fraudulent narcotics prescriptions from doctors for drugs such as OxyContin and Percocet that were being filled at various pharmacies, according to New Jersey Attorney General Anne Milgram.

“These defendants ripped off Medicaid and sold dangerous narcotics on the street, peddling black market pain pills such as OxyContin,” Milgram said in a statement. “With these arrests, we have shut down their two-pronged criminal enterprise.”

Prosecutors identified two rings, which allegedly distributed the prescription pain pills throughout Hudson County and other parts of the state, including Bergen, Ocean, Morris and Monmouth counties. The investigation is ongoing and additional arrests are expected.

Authorities said the alleged “ringleaders” include Robert Silverman, 43, of Jersey City; Louis Lisi, 34, of Union City; and Brian Kelly, 48, of Hoboken. Silverman allegedly ran his own ring, while the other two allegedly worked together, officials said.

Both rings allegedly used the same pharmacists to obtain narcotics and at least one of the same doctors to write prescriptions, authorities said, adding that they sometimes supplied each other with pills.  During the arrests, more than 1,000 pills were recovered from the individuals and locations searched.

Prosecutors say the leaders allegedly paid Medicaid beneficiaries to obtain fake prescriptions for painkillers and other drugs from two doctors: Dr. Clifton Howell, 53, of West Orange, whose medical practice is at 550 Newark Ave. in Jersey City, and Dr. Magdy Elamir, 56, of North Saddle Brook, whose practice is at 550 Summit Ave. in Jersey City. Both of those doctors were arrested.

Two pharmacists – Babak Bamdad, 41, a pharmacist in charge at Tucker Drugs at 1000 Washington St. in Hoboken, and Amir Tadros, 32, a pharmacist in charge at Five Corners Pharmacy at 591 Summit Ave. in Jersey City – also were arrested and charged in connection with rings.

Six other individuals were arrested as alleged street-level distributors for the narcotics rings.  They are Joseph Burkhardt, 50, of Jersey City; Michele J. Oliver, 41, of Wallington; John Bussanich, 23, of Cliffside Park; Danny Reed, 25, of Toms River; Marty Taraboccia, 25 of Fairview; and Jack Kennedy, 28, of Keyport.

A single 30-milligram OxyContin pill, known as a “blue,” typically sells for $10 to $20 on the street, while a 10-milligram Percocet pill sells for $5 to $8, officials said.

The investigation revealed that the two doctors, Howell and Elamir, were allegedly writing prescriptions for Medicaid beneficiaries in exchange for cash or the ability to bill Medicaid, without requiring medical need or a medical examination.  Howell allegedly demanded $75 per visit, while Elamir allegedly demanded $50. In other instances, the doctors allegedly wrote prescriptions for narcotics based only on names provided to them by the ringleaders, officials said.

The Medicaid beneficiaries would ask for prescriptions for narcotics as well as non-narcotic medications, typically high-priced maintenance drugs such as asthma or allergy medications.  The doctors allegedly wrote both the narcotic and non-narcotic prescriptions. The Medicaid beneficiaries took the prescriptions to the pharmacies to obtain the narcotics, or in some instances, Silverman or other ring members obtained the narcotics themselves.

The two pharmacists who were arrested, Bamdad and Tadros, allegedly filled fraudulent narcotics prescriptions for the criminal network. They allegedly demanded cash for the pain pills because they did not want to bill Medicaid or private insurers for narcotics, which are closely monitored.  However, they would provide the painkillers at a discount or without charge if they were also given prescriptions for other non-narcotic medicines, such as the high-priced asthma medication Advair. They allegedly billed Medicaid and private insurers for the non-narcotic prescriptions without ever dispensing the medications.

Officials would not identify the private insurers who allegedly were billed in the scam because they were victims.

Investigators executed search warrants at the homes of Silverman and Lisi and searched the doctors’ offices, as well as Tucker Pharmacy and Five Corners Pharmacy.

More than $1 million from bank accounts was seized in connection with an action filed by the Division of Criminal Justice to seize and forfeit assets as alleged proceeds and instruments of the defendants’ criminal activities, including residential and commercial real estate, vehicles, bank accounts and safe deposit boxes.

About $7,000 in cash was seized from Lisi and his house, along with several falsely labeled prescription bottles, a quantity of OxyContin pills, and several fraudulent prescriptions for narcotics. Another $8,000 was seized from a safe deposit box in Lisi’s name, and about $20,000 was seized at Silverman’s house, along with crack cocaine, a quantity of OxyContin pills, and several falsely labeled prescription bottles when detectives and officers of the Division of Criminal Justice and Jersey City Police Department conducted their searches. The joint investigation involved the Medicaid Fraud Control Unit of the Division of Criminal Justice’s Office of Insurance Fraud Prosecutor and the Jersey City Police Department’s Special Investigation Unit.

Silverman was charged with second-degree distribution of a controlled dangerous substance within 500 feet of public property and third-degree distribution of a controlled dangerous substance.

Lisi was charged with second-degree distribution of a controlled dangerous substance within 500 feet of public property and two counts of third-degree distribution of a controlled dangerous substance, and one count of second-degree endangering the welfare of a child.

Kelly was charged with one count each of second-degree distribution of a controlled dangerous substance, third-degree distribution of a controlled dangerous substance within 500 feet of public property and third-degree distribution of a controlled dangerous substance within 1,000 feet of a school.

The two doctors allegedly involved, Howell and Elamir, were each charged with second-degree distribution of a controlled dangerous substance, second-degree health care claims fraud and third-degree Medicaid fraud.

The pharmacists, Bamdad and Tadros, were each charged with second-degree health care claims fraud and third-degree Medicaid fraud.

Burkhardt and Kennedy were each charged with second-degree distribution of a controlled dangerous substance within 500 feet of public property, third-degree distribution of a controlled dangerous substance and third-degree distribution of a controlled dangerous substance within 1,000 feet of a school.

Reed and Oliver were each charged with third-degree conspiracy to distribute a controlled dangerous substance. Taraboccia and Bussanich were each charged with second-degree possession of a controlled dangerous substance with intent to distribute.

All of those arrested in the case were being held in the Hudson County Jail in lieu of bails ranging from $75,000 to $150,000, pending arraignment.