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.
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.
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.
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.