| TRENTON
- Attorney General Stuart Rabner and Division
of Criminal Justice Director Gregory A.
Paw announced that a Gloucester County man
has been indicted for allegedly attempting
to steal more than $300,000 in a physical
therapy insurance scam.
According
to Insurance Fraud Prosecutor Greta Gooden
Brown, John R. Lundy, 44, of Sewell, was
charged with second-degree health care claims
fraud, two counts of second-degree attempted
theft by deception and one count of third-degree
attempted theft by deception.
The
indictment returned by a Camden County grand
jury on Nov. 2 alleges that between September
1998 and May 2002, Lundy posed as a licensed
physical therapist and falsely submitted
more than $300,000 in fraudulent claims
– primarily automobile Personal Injury
Protection insurance claims – to several
insurance companies, including Liberty Mutual
Insurance Company, Allstate Insurance Company,
First Trenton Indemnity and State Farm Insurance
Company.
The
indictment charges that Lundy operated an
illegal physical therapy business known
as Travel Fitness in Blackwood. Lundy allegedly
submitted claims for services such as “massage”
and “therapeutic activities.”
Lundy created the false impression among
his patients and doctors who referred patients
that he was licensed as a physical therapist
by the State of New Jersey.
State
Investigator Andrea Hayes, Civil Investigator
Shawn Stewart and Deputy Attorney General
Peter W. Lee are handling the case.
“Unlicenced
medical service providers are a significant
public safety and fraud issue,” said
Insurance Fraud Prosecutor Brown.
The
indictment is merely an accusation and the
defendant is presumed innocent until proven
guilty. Second-degree crimes carry a sentence
of up to 10 years in state prison and a
criminal fine of $150,000, while third-degree
crimes carry a sentence of up to five year
in prison and a criminal fine of $15,000.
In addition, Lundy may face civil insurance
fraud fines.
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