TRENTON
- Attorney General Stuart Rabner and Criminal
Justice Director Gregory A. Paw announced
that an Essex County woman was sentenced
today for her role in a $60,300 health insurance
underwriting fraud.
According
to Insurance Fraud Prosecutor Greta Gooden
Brown, Carol Magnes, 54, of Short Hills,
was ordered by Superior Court Judge Nancy
Sivilli in Essex County to serve three years
probation and to perform 200 hours of community
service. Magnes paid full restitution, $60,313,
at the time of sentencing. Magnes’
sentence follows her Dec. 19 guilty plea
to a criminal accusation which charged her
with theft by deception.
At
the guilty plea hearing before Judge Sivilli,
Magnes admitted that between July 28, 2003
and Nov. 28, 2005, she filled out paperwork
for the medical insurance for her husband’s
medical practice, fraudulently claiming
that their son and their housekeeper worked
at the practice. Magnes admitted that by
enrolling them as employees, she was able
to obtain lower cost small employer group
health insurance for them, even though they
were not employees of the medical practice.
Furthermore, she admitted that more than
165 medical claims totaling more than $60,300
were submitted to Oxford Health Plans for
the son and the housekeeper.
State
Investigator Robert Stemmer and Supervising
Deputy Attorney General Lewis J. Korngut
coordinated the investigation. Deputy Attorney
General Nicole Rizzolo represented the Office
of Insurance Fraud Prosecutor at the sentencing.
Prosecutor
Brown noted that some important cases have
started with anonymous tips. People who
are concerned about insurance cheating and
have information about a fraud can report
it anonymously by calling the toll-free
hotline 1-877-55-FRAUD or visiting the Web
site www.njinsurancefraud.org.
State regulations permit an award to be
paid to an eligible person who provides
information that leads to an arrest, prosecution
and conviction for insurance fraud.
The
Office of Insurance Fraud Prosecutor was
established by the Automobile Insurance
Cost Reduction Act of 1998. The office is
the centralized state agency that investigates
and prosecutes both civil and criminal insurance
fraud, as well as Medicaid fraud.
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