A Gloucester County man employed as a school guidance counselor in Pleasantville admitted in federal court Thursday to having defrauded the state's health benefits system in a kickback scheme with an out-of-state pharmacy.

Michael Pilate, 39, of Williamstown, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden to a single count of conspiring to commit health care fraud, the U.S. Attorney's Office and state Attorney General's Office said in a joint statement.

Pilate, who was charged after a joint investigation by federal and state authorities, faces a maximum potential sentence of 10 years in prison, and will have to pay just under $3.5 million in restitution as well as forfeit more than $392,000 in proceeds from the scheme.

Federal prosecutors said that between January 2015 and April 2016, Pilate billed the state for unnecessary prescription creams from the compounding pharmacy, which in turn kicked back a portion of the state's payments to Pilate and his co-conspirators -- 12 of whom have also pleaded guilty and await sentencing.

As part of the conspiracy, authorities said, Pilate recruited others with the insurance coverage to obtain the prescriptions, paying them each a reward of $500.

Reached by email Thursday night, Pilate's attorney, Teri Lodge, declined to comment on the plea.

Prosecutors said his sentencing has been scheduled for May 11.

Thomas Moriarty may be reached at tmoriarty@njadvancemedia.com. Follow him on Twitter at @ThomasDMoriarty. Find NJ.com on Facebook.

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