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TRENTON
Attorney General Paula T. Dow and Criminal
Justice Director Stephen J. Taylor announced
that a South Jersey man has pleaded guilty
to billing insurance companies for physical
therapy treatments he was not licensed to
perform.
According
to Acting Insurance Fraud Prosecutor Riza
Dagli, John R. Lundy, 49, of Blackwood,
pleaded guilty yesterday (Jan. 3) to second-degree
health care claims fraud before Superior
Court Judge Louise D. Donaldson in Camden
County. The charge was contained in a Camden
County grand jury indictment returned on
Nov. 2, 2006. Lundy failed to appear when
he was scheduled for trial in December 2007,
at which time a bench warrant was issued
for his arrest. He remained a fugitive until
August 19, 2010.
Judge
Donaldson scheduled sentencing for March
4. Under the plea agreement, the state will
recommend a sentence of five years in state
prison. Lundy will be ordered to pay $133,760.10
in restitution. Lundy may also face civil
insurance fraud fines.
At
the guilty plea hearing, Lundy admitted
that between 1998 and 2002, he fraudulently
represented to patients and insurance companies
that he was a licensed physical therapist.
Lundy submitted more than $300,000 in fraudulent
claims, most of which were for services
provided to persons who had been injured
in motor vehicle accidents. Several insurance
companies received and paid a portion of
these claims, including Liberty Mutual Insurance
Company, Allstate Insurance Company, State
Farm Insurance Company and First Trenton
Indemnity Company.
The
investigation began when NJM Insurance Group
referred the matter to the Office of the
Insurance Fraud Prosecutor.
Detective
Anne Hayes, Civil Investigator Shawn Stewart
and Deputy Attorney General Peter W. Lee
were assigned to the investigation. Deputy
Attorney General Geraldine D. Zidow represented
the Office of the Insurance Fraud Prosecutor
at the guilty plea hearing.
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