United States Drug Enforcement Administration

CAMDEN, N.J. – Special Agent in Charge of DEA’s New Jersey Field Division Towanda R. Thorne-James and U.S. Attorney for the District of New Jersey Robert Frazer announced a South Jersey psychiatrist admitted to issuing invalid prescriptions for Adderall, Vyvanse, and Xanax, and other drugs, often to his sexual partners and known drug addicts. 

Louis Morelli, 73, of Cape May County, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with 17 counts of causing, with the intent to defraud and mislead, prescription drugs to be dispensed without valid prescriptions.

“Medical professionals hold a position of enormous trust, and when that trust is abused for personal gain or exploitation, the consequences can be devastating,” said DEA New Jersey Field Division Special Agent in Charge Towanda R. Thorne-James. “The conduct admitted to in this case represents a betrayal of patients, the medical profession, and public trust. DEA will continue working alongside our partners to investigate and prosecute medical practitioners who exploit patients and illegally distribute controlled substances for personal benefit.”

According to documents filed in this case and statements made in court:

Morelli owned and operated his own psychiatry practice in Smithville, New Jersey, where he worked as a licensed psychiatrist.  Over several years, Morelli issued invalid prescriptions for Adderall, Vyvanse, and Xanax to 17 different patients, and he caused these prescription drugs to be distributed outside the scope of the usual course of professional practice and for reasons other than medical necessity and legitimate medical purpose.  Morelli issued the prescriptions with the intent to defraud and mislead the pharmacies that were dispensing the prescription drugs, as well as the insurers, government benefits programs, and other third parties who paid for the drugs.  

Morelli admitted that he had sex with some of the patients for whom he wrote invalid prescriptions.  On some occasions, Morelli wrote the prescriptions in exchange for sexual activities, images, or videos.  

Morelli also issued invalid prescriptions to patients whom he knew had histories of drug addiction and overdoses.  Morelli also prescribed drugs to patients after receiving information, including from local law enforcement officers, suggesting that the patients intended to illegally trade, distribute, or otherwise re-sell the prescribed drugs.  

Morelli admitted that at least one of his invalid prescriptions involved the conscious or reckless risk of death or serious bodily injury, and that at least one of the prescriptions resulted in either death or serious bodily injury.   

For example, in 2019, Morelli received a message from a patient’s mother that the patient was abusing the drugs that Morelli had prescribed.  The mother wrote that the patient had stopped breathing the day before.  A couple of months later, Morelli learned that the same patient “took a lot of Xanax and drank some beers,” “took 50 benzos in a short amount of time,” and “told a friend” the patient planned “to shoot up.”  The patient’s mother also warned Morelli that the patient was “grooming” him to ask for prescriptions and asked Morelli to stop prescribing the drugs.  Despite these communications, Morelli continued to prescribe the drugs to the patient. 

Each of the 17 charges to which Morelli pleaded guilty is punishable by a maximum term of three years in prison, for a total maximum term of 51 years in prison.  Each charge is also punishable with a $250,000 fine.  Morelli has voluntarily surrendered his Drug Enforcement Administration Certificate of Registration and agreed to immediately surrender and abandon his licenses to practice medicine or psychiatry.  Sentencing for Morelli is scheduled for October 27, 2026.

U.S. Attorney Frazer credited the following agencies and agency personnel with the investigation:  special agents, task force officers, and diversion investigators with the Drug Enforcement Administration (DEA) New Jersey Field Division, under the direction of Special Agent in Charge Towanda R. Thorne-James; special agents of the Federal Bureau of Investigation (FBI) Newark Field Office, under the direction of Special Agent in Charge Stefanie Roddy;  special agents of the U.S. Food and Drug Administration’s Office of Criminal Investigations New York Field Office, under the direction of Fernando McMillan; and special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz.