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TRENTON
- Attorney General Anne Milgram and Criminal
Justice Director Gregory A. Paw announced
that two Camden City police officers were
indicted today on charges of official misconduct,
conspiracy and insurance fraud.
According
to Insurance Fraud Prosecutor Greta Gooden
Brown, Darryl Miller, 41, of Sicklerville,
a 21-year veteran of the Camden Police Department,
and Fred Jefferson, 42, also of Sicklerville,
a 17-year veteran of the Camden Police Department,
were charged with two counts of second-degree
conspiracy, one count of second-degree official
misconduct, one count of second-degree insurance
fraud, one count of second-degree theft
by deception and 19 counts of third-degree
tampering with public records.
The
state grand jury indictment alleges that
between Dec. 1, 2002 and Dec. 31, 2005,
Miller and Jefferson defrauded three insurance
companies – New Jersey Manufacturers
Insurance Company, Liberty Mutual Insurance
Company, and AAA Mid-Atlantic Insurance
Company – out of more than $150,000
by falsifying application and renewal forms
for auto insurance policies. Miller and
Jefferson, in addition to being police officers,
owned, operated and controlled MJ Transportation
Company LLC, a non-emergency medical transportation
business that transported patients from
home to doctors’ offices and other
places for diagnostic testing and medical
treatments. The Camden County Board of Social
Services utilized MJ Transportation to transport
patients to and from medical treatments.
The
indictment alleges that Miller and Jefferson
illegally obtained required insurance on
the vans operated by MJ Transportation at
a substantially lower cost by falsely claiming
that the vans were not being used in a commercial
enterprise but were limited to personal
use. It is also alleged that motor vehicle
registration forms filed with the New Jersey
Motor Vehicle Commission falsely indicated
that the vans were only used for personal
transportation.
One
of the vans purportedly used for personal
use was involved in a fatal accident in
2004. Due to the alleged fraud, the victim’s
family was denied compensation, since the
van was not properly insured. The matter
is currently in litigation.
The
indictment alleges that Miller and Jefferson
allegedly made such misrepresentations concerning
at least eight transportation vans that
were used commercially by MJ Transportation
Company. As a result, they allegedly saved
approximately $9,000 per vehicle per year.
State Investigator George Meyers Jr., Civil
Investigator Patricia Barry, and Deputy
Attorney General Susan Kase were assigned
to the investigation. Kase presented the
matter to the state grand jury.
“Our
office is committed to protecting New Jersey
residents from unscrupulous acts by combating
insurance fraud in any form it takes,”
said Insurance Fraud Prosecutor Brown. “It
is particularly disturbing when sworn police
officers violate the public’s trust
by participating in insurance fraud schemes.”
Insurance
Fraud Prosecutor Brown thanks New Jersey
Manufacturers Insurance Company, Liberty
Mutual Insurance Company, and AAA Mid-Atlantic
Insurance Company for their assistance in
this matter.
The
indictment is merely an accusation and the
defendants are presumed innocent until proven
guilty. Second-degree crimes carry a maximum
punishment of 10 years in state prison and
a criminal fine of $150,000, while third-degree
crimes carry a maximum punishment of five
years in prison and a fine of $15,000. Miller
and Jefferson also may face civil insurance
fraud fines.
The
indictment was handed up to Superior Court
Judge Neil H. Shuster in Mercer County.
Judge Shuster assigned the case to Superior
Court in Camden County, where Miller and
Jefferson will be ordered to appear at a
later date.
>>
View
Indictment
(1.13mb pdf) plug-in
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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