|TRENTON – Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor announced that a Morris County man today was sentenced to three years in prison for misappropriating more than $300,000 in client funds – intended to fund the client’s employee health insurance plan – to support his ailing business.
William Boudreau, president of Managed Benefits Plans (MBP) in Hackettstown, was also required to pay $50,000 in restitution at his sentencing before Warren County Superior Court Judge Matthew Curry.
“Prison is the appropriate place for this man who betrayed his fiduciary duties as steward of the funds intended to pay an entire staff’s health insurance premiums,” said Acting Attorney General Hoffman. “Instead of making the insurance payments, he stole the money to prop up his ailing business, risking the medical insurance of those unsuspecting employees.”
In October, Boudreau, 69, of Flanders, pleaded guilty to second-degree theft by failure to make required disposition of property received for stealing $331,800 intended to cover the employee health premiums for his client, Putnam Savings Bank. In exchange for his guilty plea, prosecutors agreed to dismiss a charge of second-degree misapplication of entrusted property.
“He’s now paying the price for selfishly putting his own needs above the interests of his client and above the law,” said Acting Insurance Prosecutor Christopher Iu.
In May 2009, MBP was hired as the third-party administrator for Putnam Savings Bank. As part of the agreement, Putnam required Boudreau to consolidate all of the Empire Blue Cross health insurance premium bills for its employees into a “global” bill. MBP would send the bill to Putnam, and Putnam would then pay MBP for the total premium charges. MBP was then responsible for paying all of the individual bills to Empire.
In 2011, MBP began losing money, and instead of paying Putnam’s insurance premiums, Boudreau spent the money to keep his business afloat. Despite illegally funneling Putnam’s money into MBP, Boudreau’s company was insolvent by December 1, 2011
Deputy Attorney General Reid Caster presented the case to the grand jury. Detective Jon Powers coordinated the investigation and additional assistance was provided by Analyst Theresa Worthington.
Acting Insurance Fraud Prosecutor Iu 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 at 1‑877‑55‑FRAUD, or visiting the Web site at www.NJInsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.