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South Jersey Companies Indicted on Insurance Fraud Charges

A grand jury recently indicted a South Jersey recycling company and a South Jersey insurance agency, along with the operators of the businesses, for allegedly perpetrating insurance fraud. The aim of the scheme was reportedly to defraud the government out of workers’ compensation coverage by lying in order to obtain lower premiums on workers’ comp insurance coverage.

The recycling company in the case is Supreme Asset Management Recovery (SAMR), which is located in Lakewood, NJ. Meanwhile, the insurance company indicted on the fraud charges is The Amato Agency, which operates out of Neptune, NJ. Additionally, five officials associated with the respective businesses have been indicted on criminal charges stemming from the alleged fraud.

NJ insurance fraud prosecutors allege that the suspects conspired to fill out insurance applications and provided incomplete and, in some cases, flat-out inaccurate information about the job status of several employees at SAMR. The suspects reportedly indicated that most of SAMR’s employees worked in an office and primarily performed clerical tasks. The reality, however, was that a majority of the company’s 50-plus employees actually worked in a warehouse and performed dangerous tasks that exposed the workers to significant risk of serious injury. Since these workers were more likely to avail themselves of workers’ compensation benefits at some point in the future following a work-related injury, the workers’ comp premiums figured to be relatively high. Rather than pay the higher premiums, SAMR and The Amato Agency allegedly lied on insurance applications.

The total amount of the alleged fraud was nearly $600K. That money came at the expense of New Jersey Casualty, a subsidiary of NJ Manufacturer’s Insurance Company.

The suspects have all been indicted on charges of fraud, theft by deception, conspiracy and misconduct by a corporate official. Since the charges are classified as second degree crimes, each suspect faces a potential punishment of 5-10 years in NJ State Prison on each criminal count, as well as individual fines of up to $150,000 on each count.

For further information about this case, view the Patch.com article, “Brick Woman among 5 Charged in $600K Workers Comp Scheme.”

 

If you or a loved one has been charged with insurance fraud, theft by deception or any other theft or fraud crime in New Jersey, you should speak with an experienced criminal defense lawyer immediately. Contact the Law Firm of Stephen R. Piper today for a free consultation.

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