Cape May Psychiatrist Admits Trading Prescriptions for Sex

A disturbing case of medical misconduct has shaken our community this week, as a Cape May County psychiatrist admitted to exploiting vulnerable patients struggling with addiction.

Louis Morelli, 73, a Cape May County resident who operated a private practice in Galloway, pleaded guilty Wednesday in Camden federal court to 17 counts of causing prescription drugs to be dispensed without valid prescriptions, with intent to defraud and mislead. The U.S. Attorney's Office District of New Jersey announced the plea, which revealed a pattern of exploitation that targeted some of the most vulnerable members of our community.

According to federal prosecutors, Morelli used his position of trust to prescribe highly addictive medications—including Adderall, Vyvanse, and Xanax—to 17 patients without valid medical reasons. In his plea, the psychiatrist admitted to writing these unlawful prescriptions in exchange for sexual activities, photos, and videos. He has voluntarily surrendered both his DEA Certificate of Registration and his license to practice psychiatry.

The scope of Morelli's misconduct extended beyond sexual exploitation. Federal authorities say he knowingly prescribed controlled substances to patients he was aware had histories of drug addiction and overdoses. Even more troubling, he continued prescribing after being contacted by law enforcement officials who informed him that patients intended to illegally trade or sell the medications.

In his plea agreement, Morelli admitted that at least one prescription involved the risk of death or serious injury, and that at least one resulted in death or serious bodily injury. The human cost of these actions cannot be overstated—these were real people in our community whose lives were endangered or destroyed.

One case illustrates the recklessness of Morelli's conduct with particular clarity. In 2019, federal prosecutors say, the mother of a patient contacted the doctor with alarming reports about her child's Xanax abuse. The messages detailed that the patient had stopped breathing after taking the anxiety medication, had consumed as many as 50 pills at a time, and had mixed the drug with alcohol—a potentially fatal combination.

Despite these explicit warnings from a concerned family member, investigators say Morelli continued to prescribe Xanax to the patient.

The psychiatrist's actions also had financial consequences beyond the personal harm to patients. Federal prosecutors say his fraudulent prescribing practices defrauded pharmacies, health insurers, and government benefits programs that covered the costs of these medically unnecessary prescriptions.

Morelli is scheduled to be sentenced in Camden federal court on Monday, October 27. Each count carries potential prison time, though the specific sentence will be determined by the court based on federal sentencing guidelines and the severity of the offenses.

This case serves as a sobering reminder of the importance of accountability in healthcare, particularly when treating patients battling addiction. Our community's most vulnerable residents deserve providers who will help them heal, not exploit their struggles for personal gratification.