A Toms River-based sports doctor faces up to five years in prison for taking more than $60,000 in bribes from a Lakewood compound pharmacy owner, referring pain cream prescriptions on his behalf, and falsifying insurance documents.


In a Camden federal courtroom, James Morales, 45, pleaded guilty to a count of conspiracy to accept kickbacks and commit health care fraud, according to information from the office of New Jersey U.S. Attorney Paul J. Fishman.

Morales, who operated Shore Sports Medicine, admitted that from Feburary through December 2013, he took the cash from Vladimir Kleyman, 44, operator of Prescriptions R Us (PRU).

The compounding pharmacy customized medications for patients, varying types and dosages of drugs. PRU produced a topical cream composed of ketamine - a Schedule III non-narcotic - as well as lidocaine, diclofenac, and other components, investigators said.

In his plea, Morales also admitted leaving quantity details on his pain cream subscriptions in documents submitted to Horizon health insurors for reimbursement, after being advised by Kleyman that the quantities he noted were too high to quality for repayment.

Kleyman previously admitted paying the kickbacks and is due for sentencing on July 7. Morales has an October 5 sentencing date, at which time he also risks a fine as high as $250,000.