Grand Jury Indicts Two New Jersey Businesses for Insurance Fraud
Two South Jersey businesses, and their operators, were indicted by a grand jury on charges of insurance fraud, theft and misconduct. The businesses under indictment include a recycling company located in Lakewood NJ and an insurance company located in Neptune, New Jersey. The government has alleged that the owners and operators of the companies were behind a massive scheme to commit workers’ compensation fraud.
According to prosecutors, the businesses conspired to doctor their records and obtain full workers’ compensation coverage without actually paying the required premiums. The recycling business, Supreme Asset Management Recovery (SAMR), allegedly filled out inaccurate insurance applications, which were then knowingly submitted by The Amato Agency, the insurance agency indicted in the case. The insurance forms claimed that SAMR employees were not at risk of serious injury because the majority of the company’s workers performed primarily clerical tasks in an office setting. However, the truth was that most of SAMR’s employees worked in a warehouse and performed high-risk jobs that included refurbishing electronic equipment and other potentially dangerous tasks.
Prosecutors said that the total amount of the fraud perpetrated by the co-defendants was almost $600,000. Acting Insurance Fraud Prosecutor Christopher Iu called this an example of “outrageous corporate greed” and observed that when unscrupulous NJ businesses attempt to cheat the workers’ compensation system, “honest policyholders are forced to make up the carriers’ losses in the form of higher premiums.”
A total of five people have been charged in connection with the alleged fraud scheme. If they are ultimately convicted on the very serious criminal charges, which include insurance fraud, theft by deception and conspiracy, they could each be sentenced to as many as 10 years in New Jersey State Prison – on each criminal count. Beyond that, the individuals accused of conspiring to defraud the government could also incur fines of up to $150,000 for each criminal count.
Under NJ state law, a person who provides valuable information that leads to arrest, prosecution and, ultimately, conviction for insurance cheating can potentially receive a monetary reward. Anyone who believes they have information about insurance fraud, whether it’s been committed by an individual or a company, should call New Jersey insurance fraud investigators at 1-877-55-FRAUD.
For additional information about this insurance fraud case, access the Patch.com article, “Brick Woman among 5 Charged in $600K Workers Comp Scheme.”
If you have been accused of insurance fraud, health care fraud or theft by deception in New Jersey, you need to consult with an experienced criminal defense attorney as soon as possible. The knowledgeable criminal defense lawyers at Bramnick, Rodriguez, Grabas, Arnold & Mangan, LLC are ready to help you fight your criminal charges. Contact us today to schedule a free consultation about your case.