TRENTON
- Attorney General Peter C. Harvey announced
that a former Sergeant with the Hamilton
Township Police Department previously
convicted as part of a Mercer County arson-for-hire
ring has been charged by the Division
of Criminal Justice - Office of Insurance
Fraud Prosecutor with additional crimes
including offering bribes to the chiefs
of several volunteer fire departments.
The investigation into the alleged bribery
scheme is continuing.
"Insurance
fraud is among our top priorities,"
said Attorney General Harvey. "We
have dedicated significant resources to
investigating and prosecuting insurance
fraud in New Jersey. We're fighting insurance
fraud on three fronts: criminal prosecution,
civil sanctions and forfeiture of the
licenses of professionals who engage in
insurance fraud. We've used that triple
threat to make our Office of Insurance
Fraud Prosecutor one of the nation's foremost
fraud fighting agencies."
According to Vaughn L. McKoy, Director,
Division of Criminal Justice and Insurance
Fraud Prosecutor Greta Gooden Brown, Jeffrey
Nemes, 37, Lea Drive, Hamilton Township,
Mercer County, has been charged in yet
another State Grand Jury indictment with
bribery in official and political matters
and conspiracy. If convicted on the current
criminal charges, Nemes faces up to 20
years in state prison and a fine of up
to $100,000.
Insurance
Fraud Prosecutor Gooden Brown noted that
the ongoing investigation by the Division
of Criminal Justice - Office of Insurance
Fraud Prosecutor uncovered information
that on at least two occasions Nemes approached
the chiefs of two separate Hamilton Township
volunteer fire companies and offered up
to $500 cash and other rewards if they
(the volunteer fire chiefs) would delay
response to fire scenes, hold back suppression
of fires, and/or cause additional damage
at fire scenes by knocking out windows,
walls and roof structures. The impact
of such actions would be to increase fire
and property damage and, as a result,
increase the value of insurance claims.
The State Grand Jury Indictment alleges
on April 22, 1998, Nemes offered cash
to a Hamilton Township volunteer fire
chief as part of a scheme to delay firefighting
response and to increase damage at fire
locations involving the fire company.
Additionally, the indictment alleges that
on June 24, 1998, Nemes and Marc Rossi,
the former owner of Rossi Adjustment Services,
conspired to bribe a second fire company
chief to engage in similar conduct designed
to enhance financial profit for both Nemes
and Rossi. The Insurance Fraud Prosecutor's
investigation did not uncover any evidence
that the fire chiefs nor the volunteer
fire companies delayed any response to
fire scenes or in any way jeopardized
the life or property of area residents
as a result of the alleged bribery scheme.
Director McKoy noted that Nemes, a former
Sergeant with the Hamilton Township Police
Department, a former volunteer deputy
chief of the Whitehorse Fire Company,
and the owner/operator of Nemes Enterprises
construction company, was first indicted
by a State Grand Jury on Dec. 18, 2000.
That indictment charged Nemes with stealing
more than $200,000 in insurance money
from four homeowners whose properties
had sustained fire damage. Nemes was convicted
of theft by failure to make required disposition
of property received by a Mercer County
jury in February. On May 30, Nemes was
sentenced to seven years in state prison.
Gooden Brown noted that on Nov. 10, Rossi
pleaded guilty to bribery and operating
an "arson-for-profit" insurance
fraud scheme responsible for at least
six arson fires which netted more than
$500,000 in insurance settlement claims.
Rossi admitted to intentionally causing
the fires so his public insurance adjustment
business would be hired to adjust the
insurance claims. The arson fires occurred
in and around the Trenton area between
Jan. 22, 1999 and Aug. 10, 1999. Rossi
is scheduled to be sentenced in Mercer
County Superior Court on Jan. 9, 2004.
"This
continuing investigation and prosecution
has revealed a massive and far-reaching
pattern of corruption and greed fueled
by insurance fraud," said Criminal
Justice Director McKoy. "Attempts
to bribe and corrupt others to participate
in this dangerous scheme not only jeopardized
the lives of firefighters and innocent
citizens, but defrauded insurance companies
out of more than half a million dollars.
Insurance fraud is a serious crime with
serious consequences. The Office of Insurance
Fraud Prosecutor is committed to prosecuting
insurance fraud and related crimes.
"Insurance
fraud takes many forms and in this case
it took the form of official bribery,"
said Insurance Fraud Prosecutor Greta
Gooden Brown. "It is very disturbing
that a sworn police officer and fire officials
would allegedly conspire to cause unnecessary
damage to property that was already at
risk due to a fire."
The indictment was handed up to Mercer
County Superior Court Judge Maria Marinari
Sypek on Dec. 18. The case will assigned
to the Mercer County Superior Court for
trial. Nemes will be ordered to appear
in Court for bail and arraignment.
The investigation was conducted by the
Division of Criminal Justice - Office
of Insurance Fraud Prosecutor. Division
of Criminal Justice State Investigator
Robert Stemmer and Civil Investigator
Joseph Salvatore coordinated the investigation
which led to the indictment. Deputy Attorney
General Lew Korngut assigned to the Office
of Insurance Fraud Prosecutor represented
the Division of Criminal Justice before
the State Grand Jury.
In announcing the indictment, Criminal
Justice Director McKoy and Insurance Fraud
Prosecutor Gooden Brown noted that the
Division of Criminal Justice and the Insurance
Fraud Prosecutor have established toll-free
tiplines for the public to report corruption,
insurance fraud and other illegal activities.
The statewide "Corruption TipLine"
is... 1-866-TIPS-4CJ. The Office of Insurance
Fraud Prosecutor's toll-free hotline is...
1-877-55-FRAUD. Additionally, the
public can log-on to the Division of Criminal
Justice Web Page at www.njdcj.org or the
insurance fraud web site at www.NJInsurancefraud.org
to report suspected wrongdoing. All information
will remain confidential.
An indictment is merely an accusation.
The defendant is presumed to be innocent
of the charges unless and until proven
guilty beyond a reasonable doubt.
