| TRENTON
- Division of Criminal Justice Director
Gregory A. Paw announced that a former Gloucester
County Business Executive, sentenced in
Gloucester County Superior Court, has been
ordered to repay more than $80,000 in stolen
monies obtained through a fraudulent health
insurance coverage scam.
According to Insurance Fraud Prosecutor
Greta Gooden Brown, Bernard Gelman, 65,
South 6th St., Phila., PA, formerly of Atlantic
Avenue, Longport, Atlantic County, was sentenced
by Gloucester County Superior Court Judge
John Tomasello to pay more than $80,000
in restitution, pay a $5,000 civil fine,
and serve three years probation.
Gelman pleaded guilty to a criminal accusation
charging theft by deception before Judge
Tomasello on Dec. 16, 2005. In pleading
guilty, Gelman, a former senior executive
at The Holt Group (THG), located in Gloucester
County, admitted that he falsified information
to fraudulently obtain disability benefits
for his son, Kevin Gelman. Kevin Gelman
had been an employee at Holt Oversight &
Logistical Technologies (HOLT), an affiliate
of THG, from February 1997 to April 1998.
An investigation by the Office of Insurance
Fraud Prosecutor determined that in July
1998, Bernard Gelman ordered HOLT's Director
of Risk and Insurance Management to alter
the date of his son's resignation from the
company so that he (Kevin) could obtain
disability insurance coverage under a new
policy that went into effect after his departure.
According to the accusation, more than $80,000
was obtained from Prudential Insurance Company
as the result of the alleged fraud.
State Investigator Anthony Butler, Civil
Investigator Janice Lucas and Deputy Attorney
General Peter W. Lee were assigned to the
investigation. The investigation was referred
to the Office of Insurance Fraud Prosecutor
by Prudential Insurance Company.
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