A 90-day state pilot program that allows Ocean County residents who either purposely or inadvertently received unwarranted Medicaid benefits a chance to withdraw from the program and avoid criminal prosecution starts on Tuesday.

The program, launched by the Office of the State Comptroller, comes in the wake of 26 arrests in Lakewood on fraud charges.

In all, those residents who were mostly arrested in a series of FBI raids in late June, wrongfully collected more than $2 million in public-assistance benefits, authorities said.

The residents who participate in State Comptroller Philip Degnan's program, dubbed the "Ocean County Recipient Voluntary Disclosure Program," will have to pay full restitution to Medicaid and additional penalties, and must voluntarily withdraw from Medicaid for a one-year period.

"This is not an amnesty program. This is not a 'Get of out jail free' card," Degnan told The Star-Ledger last week. "This is a chance for people to come into compliance without fear of prosecution."

A statement from Degnan announcing the program says his office is "in consultation with the Ocean County Prosecutor's Office."

But on Monday, the prosecutor's office released its own statement assuring Ocean County residents it would continue to prosecute any Medicaid fraud case brought to them.

"In terms of the Amnesty program that the NJ State Comptroller's Office initiated: The amnesty program came from them. We have no authority to mandate or monitor how a state agency does business," the statement said.

The prosecutor's office, responding to criticism that they're not doing enough to prosecute public-assistance fraud cases, said they do not have access to the comptroller's files.

"They oversee the program's application and implementation process. It is like any other victim of financial crime or fraud; we will not know they are a victim of criminal activity unless they tell us. If a victim comes forward, we investigate and prosecute on their behalf," the prosecutor's office said.

The comptroller's office will hold a public meeting Tuesday night at the Pine Belt Arena in Toms River at 6:30 p.m. for residents who want to learn more about the Ocean County Recipient Voluntary Disclosure Program. No recording devices, including cameras, will be permitted at the meeting.

Alex Napoliello may be reached at anapoliello@njadvancemedia.com. Follow him on Twitter @alexnapoNJ. Find NJ.com on Facebook.

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