Five New Jersey residents and two NJ businesses were recently indicted in an insurance fraud scheme revolving around workers’ compensation.
According to NJ prosecutors, the suspects worked together in a scheme that netted almost $600K from New Jersey Casualty. The fraud was allegedly committed between January 2011 and June 2014, with the suspects misclassifying warehouse workers as office employees so that the businesses could secure significantly lower workers’ compensation premiums. The fraud was reportedly extreme: many warehouse workers who performed dangerous tasks on a daily basis were falsely classified as office workers who only had to perform clerical tasks.
One of the suspects is a 39-year-old woman from Brick Township, NJ. She worked as an official for Supreme Asset Management Recovery (SAMR), an electronic recycling company located in Lakewood, New Jersey. She faces a number of criminal charges, including fraud, theft by deception and conspiracy. She has been accused of providing false and misleading information in order to obtain lower premiums on workers’ compensation insurance. All of the charges against the suspect are classified as second degree felonies. If the suspect is ultimately convicted on any of the charges, she faces a penalty of 5-10 years in NJ State Prison, as well as a fine of up to $150,000.
The other suspects in the case include a 49-year-old man from Toms River, a 72-year-old man from Waretown NJ, a 49-year-old man from Howell, NJ, and a 42-year-old woman from Old Bridge, New Jersey. They worked in various capacities for SAMR and The Amato Agency, the two businesses that are accused of committing the insurance fraud. All of these suspects have been charged with multiple crimes ranging from fourth degree falsifying records to second degree misconduct by a corporate official.
Meanwhile, the two businesses behind the alleged workers’ comp fraud scheme could each be fined as much as $1.35 million if they are convicted.
For more information about this case, read the Patch.com article, “Brick Woman among 5 Charged in $600K Workers Comp Scheme.”
If you or a loved one has been charged with theft by deception, business fraud or any other white collar crime in New Jersey, you should speak with an experienced criminal defense attorney. The skilled South Jersey criminal defense lawyers at the Law Offices of John W. Tumelty will help you fight your criminal charges. Contact us today to schedule a free consultation about your case.