|TRENTON – Acting Attorney General Robert Lougy and the Office of the Insurance Fraud Prosecutor (OIFP) announced that a Burlington County medical device distributor was charged today with stealing more than $100,000 in insurance payments intended for two companies that made and marketed a device to clear patients’ airways.
Loetta Karen Edwards, 46, owner of Edwards Medical DME, LLC, (Edwards Medical) in Cinnaminson, was indicted on one count of second-degree theft by failure to make required disposition of property received.
Edwards was a local distributor of the “Frequencer,” a Canadian-made medical device that helps clear airways in patients with cystic fibrosis and chronic obstructive pulmonary disease. According to prosecutors, Edwards would order the devices on behalf of individuals who paid for them through their insurance companies. Prosecutors say Edwards would then process the insurance claims for the devices and receive the payments. She would then remit a portion of the money to the device manufacturer, Dymedso, Inc., and a portion to Dymedso’s Ohio-based sales representative, Clinical Technology.
From December 2013 to November 2014 Edwards stole approximately $103,000 in insurance payments intended for the two companies, according to prosecutors.
The indictment is merely an accusation and the defendant is presumed innocent until proven guilty. Second-degree crimes carry a sentence of five to 10 years in state prison and a criminal fine of up to $150,000.
Deputy Attorney General Thomas G. Tresansky, Jr. presented the case to the grand jury. Detectives Eric Flickinger and Brian Bunn Ronald coordinated the investigation.
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.