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For Immediate Release:
For Further Information:
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March 4, 2011

Office of The Attorney General
- Paula T. Dow, Attorney General
Division of Criminal Justice
- Stephen J. Taylor, Director
Office of the Insurance Fraud Prosecutor
- Riza Dagli, Acting Insurance Fraud Prosecutor

Media Inquiries-
609-292-4791
Citizen Inquiries-
609-292-4925

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South Jersey Man Sentenced to State Prison for Physical Therapy Insurance Scam

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TRENTON Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced that a South Jersey man was sentenced to state prison today for 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, was sentenced to five years in state prison by Superior Court Judge Louise D. Donaldson in Camden County. Lundy was also ordered to pay $133,760.10 in restitution. The sentence was based on Lundy’s guilty plea to second-degree health care claims fraud, a charge 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 Aug. 19, 2010.

In pleading guilty on Jan. 3, 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. Lundy performed the services in an office building in Gloucester Township, Camden County. Several insurance companies received and paid a portion of these claims, including Liberty Mutual Insurance Company, Allstate Insurance Company, and State Farm Insurance Company.

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 and sentencing hearings.

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