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For Immediate Release:  
For Further Information:
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September 8, 2008  

Division of Criminal Justice
609-292-4791

Office of The Attorney General
- Anne Milgram, Attorney General
Division of Criminal Justice
- Deborah Gramiccioni, Director

Office of the Insurance Fraud Prosecutor
- Greta Gooden Brown, Insurance Fraud Prosecutor

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Former Hillsborough Woman Sentenced For Health Care Insurance Claims Fraud

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TRENTON - Attorney General Anne Milgram announced that a former Somerset County woman has been sentenced for submitting phony prescription drug claims.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Katherine Lee, 30, formerly of Hillsborough, was ordered on Friday, Sept. 5, by Superior Court Judge Edward M. Coleman in Somerset County to serve three years probation and to pay $8,108 in restitution to Selective Insurance Company. The sentence was pursuant to Lee’s March 3 guilty plea to a criminal accusation which charged her with health care claims fraud.

At the guilty plea hearing, Lee admitted that between Nov. 1, 2000 and April 30, 2004, she submitted 15 fraudulent prescription drug claims to Selective Insurance Company for prescription medications. Lee admitted that following a serious automobile accident, she submitted claims reflecting that she had paid full price for the prescription medication but had, in reality, only paid a co-payment of between $5 and $25. Lee admitted that she was responsible only for the co-pay portion of the cost of the medications because her prescriptions were provided to her pursuant to a prescription drug insurance plan.

State Investigator Janet Amberg, Civil Investigator Dana Basile and Deputy Attorney General Susan Kase were assigned to the investigation. Kase represented the Office of Insurance Fraud Prosecutor at the sentencing.

This case was referred to OIFP by the Special Investigative Unit of the Selective Insurance Company which initially uncovered the fraud and assisted OIFP in the investigation. Insurance Fraud Prosecutor Brown thanks Selective for their assistance in this matter.

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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