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TRENTON
- First Assistant Attorney General Anne
Milgram and Criminal Justice Director Gregory
A. Paw announced today that an Essex County
lawyer, his law firm, and 20 other individuals
have been charged as part of an ongoing
insurance fraud investigation targeting
the illegal use of runners and staged automobile
accidents.
According to Insurance Fraud Prosecutor
Greta Gooden Brown, the defendants were
charged late Friday in four separate indictments.
The first indictment charged Irwin B. Seligsohn,
Esq., 71 of Kinnelon; Dannie Campbell, Sr.,
56, of Newark, Andre M. Johnson, 32, of
Newark, Edward Davis, 33, of Newark, and
Goldberger, Seligsohn & Shinrod, PA,
a law practice located at 735 Northfield
Ave., West Orange, with second-degree conspiracy
to commit health care claims fraud. The
indictment also charges Seligsohn, Campbell
with second-degree health care claims fraud.
Campbell, Johnson and Davis were charged
with an additional count of second-degree
health care claims fraud.
According to Paw, the first indictment returned
by the Essex County grand jury alleged that
between July 17, 1998 to June 3, 2003, Irwin
B. Seligsohn, Dannie Campbell, Sr., Andre
Johnson, Edward Davis, and the law firm
of Goldberger, Seligsohn, & Shinrod,
PA, conspired to submit insurance claims
for a fake auto accident. The accident was
purported to have occurred at intersection
of Leslie and Shaw Streets in Newark. Following
the “accident,” approximately
$18,000 in bodily injury insurance claims
were allegedly submitted to Allstate Insurance
Company. In addition, Allstate allegedly
paid approximately $14,500 in Personal Injury
Protection (PIP) payments to health care
providers for treatments rendered to some
of the conspirators in the purported accident.
The second indictment charged Edward Campbell,
Jr., aka Tariq Campbell, 37, of Elizabeth;
Michael Ashford, 34; Deneen Woodard, 28;
and Robert Woodard, age unknown; and Anthony
Dortch, 41, all residing in Newark; Tahesha
Boss, aka Tanisha Boss; Rabya Boss, 30;
Nathaniel Mitchell, 54; and Anton Mitchell,
all residing in East Orange; with conspiracy
to commit health care claims fraud and health
care claims fraud, both second-degree. The
indictment alleges that between Dec. 19,
1998 and Jan. 14, 2003, Campbell, Jr., set
up a fake/staged accident involving Dortch,
Tanisha Boss, Rabya Boss, Nathaniel Mitchell,
Anton Mitchell, Ashford, and Deneen Woodard,
and Robert Woodard. It is alleged that the
defendants conspired to submit insurance
claims for the fake auto accident. The accident
was purported to have occurred at the intersection
of Ferry and Jefferson streets in Newark
and involved a 1990 Dodge van. It is charged
that, after the “accident,”
lawsuits were filed and more than $30,000
in bodily injury settlements were paid,
in addition to PIP payments made to health
care providers for treatments rendered to
some of the conspirators totaling more than
$25,000. The claims were submitted to the
Eagle Insurance Company and Rutgers Casualty
Insurance Company.
The third indictment charged Edward Campbell,
Jr., Sophia Green, 44, of Newark; Eugene
Jackson, 55, of East Orange; and Tish Lee,
37, of Newark with second-degree conspiracy
to commit health care claims fraud and as
well as second-degree health care claims
fraud. The indictment alleges that between
Aug. 7, 2000 and Jan. 21, 2003, the defendants
conspired to submit insurance claims for
a fake auto accident. The accident purported
to have occurred when Campbell alleged that
his 1999 Lincoln Navigator was rear ended
on Cordier Street in Irvington. It is alleged
that $20,000 was paid by Clarendon Insurance
Company to health care providers for treatments
rendered to some of the conspirators.
The fourth indictment charged Felicia Crute,
40; Trojah Irby, age unknown; Aaron Green,
25, all of whom reside in Newark; and Katuwan
Thomason, 27, of Irvington and Newark, with
second-degree conspiracy to commit health
care claims fraud and second-degree health
care claims fraud. The indictment alleges
that on Aug. 30, 2000, Edward Campbell,
Jr., Felicia Crute, Trojah Irby, Aaron Green,
and Katuwan Thompson conspired to submit
insurance claims for a fake auto accident.
The accident was purported to have occurred
when a 1987 Acura Legend was hit in the
rear while making a turn onto 18th Avenue
from Irvine Turner Boulevard in Newark.
It is charged that approximately $11,000
in PIP treatment claims were filed for chiropractic
treatments for some of the conspirators,
and that bodily injury claims in the amount
of $5,000 were filed. The claims were allegedly
submitted to the State Farm Insurance Company.
State Investigator Ned Shaw, Civil Investigator
Dana Basile, Analyst Kathy Ratliff, and
Deputy Attorney General Andrew C. Fried
were assigned to the investigation. Fried
presented the case to the Essex County grand
jury.
The new case will be venued in Essex County
where a previously filed RICO indictment
and various motions associated with the
indictment have been argued, and where the
defendants will be ordered to appear in
court to answer the charges on a date to
be determined.
The Office of Insurance Fraud Prosecutor
has returned several indictments as part
of this continuing racketeering and staged
accident investigation. On Nov. 15, 2005,
a state grand jury indictment alleging racketeering
and related charges was returned naming
Seligsohn, and the law firm of Seligsohn,
Goldberger & Shinrod, PA with paying
runners to solicit other individuals to
participate in staged automobile accidents
so that automobile insurance PIP and other
insurance claims could be submitted to various
insurance companies. The 2005 indictment
alleges that Seligsohn improperly accounted
for the payments made to the runners and,
as a result, Seligsohn, and the law firm
were charged with various New Jersey tax
violations.
The racketeering indictment charged five
persons with being “runners”
for illegally receiving payments for soliciting
persons to participate in staged accidents
and file insurance claims. Some of the runners
were charged with state income tax violations
and with assisting with the submission of
phony insurance claims knowing that the
accidents were staged and that no one was
injured. Twenty-three other people were
charged as participants in phony or staged
auto accidents and insurance claims as claimants.
The racketeering indictment sought the forfeiture
of an estimated $5 million in financial
assets obtained by the law firm of Seligsohn,
Goldberger & Shinrod, PA as a result
of the illegal insurance fraud scheme. The
indictment seeks proceeds such as investments,
bank accounts, office equipment, real estate,
and other assets allegedly obtained as proceeds
from engaging in theft by deception, health
care claims fraud, criminal use of runners,
and tax fraud.
“The
use of runners has a domino effect on the
insurance industry. Runners are paid to
procure patients and clients,” Prosecutor
Brown said. “Runners, in turn, stage
accidents and urge people who are not injured
to be treated for injuries. They submit
false police auto accident reports and engage
in fraudulent conduct which drives up the
cost of auto insurance in this state.”
The indictments, which were handed up on
June 15, are merely accusations. The defendants
are presumed innocent until proven guilty.
Under state law, second-degree crimes carry
a maximum punishment of 10 years in state
prison and a criminal fine of $150,000.
In addition, the defendants may face civil
insurance fraud fines.
Prosecutor Brown noted that some important
cases have started with anonymous tips.
People who are concerned about insurance
cheating and have information about a fraud
can report it anonymously by calling the
toll-free hotline 1-877-55-FRAUD
or visiting the Web site www.NJInsuranceFraud.org.
State regulations permit an award to be
paid to an eligible person who provides
information that leads to an arrest, prosecution
and conviction for insurance fraud.
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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