TRENTON
- Division of Criminal Justice Director
Vaughn L. McKoy announced that the Division
of Criminal Justice - Office of the Insurance
Fraud Prosecutor has obtained an indictment
charging a Somerset County corporation
with stealing employee health care insurance
premiums.
According to Insurance Fraud Prosecutor
Greta Gooden Brown, Direct Home, Inc.,
a housewares distributor, which did business
at 1075 Easton Ave., Suite 1, Somerset,
Somerset County, was charged with theft
by failure to make proper disposition
(3rd degree). Direct Home, Inc. now does
business at 1739 Front St. in Plainfield,
Somerset County. If convicted, the Direct
Home faces a criminal fine of $15,000.
In addition, Direct Home, Inc. faces civil
insurance fraud fines.
The Somerset County Grand Jury indictment
alleges that between April 14 and May
8, 2001, Direct Home, Inc. accepted more
than $2,000 health insurance premiums
from a Direct Home, Inc. sales representative
from Charlotte, North Carolina. The premiums
were so the representative would be included
on the employer sponsored group health
insurance plan maintained by Direct Home,
Inc. Aetna Insurance Company provided
the insurance coverage for Direct Home,
Inc. representatives. An investigation
by the Division of Criminal Justice -
Office of the Insurance Fraud Prosecutor
determined that, although Direct Home,
Inc. accepted the insurance premiums from
the representative, his health insurance
had allegedly been cancelled and he had
no health insurance coverage.
State Investigator Scott Caponi, and Deputy
Attorney General Dennis Kwasnik were assigned
to the investigation. DAG Kwasnik represented
the Division of Criminal Justice - Office
of the Insurance Fraud Prosecutor before
the Somerset County Grand Jury. The case
was referred to the Office of the Insurance
Fraud Prosecutor by the Department of
Banking and Insurance.
The indictment, which was handed up on
Jan. 26, is merely an accusation. The
defendant is presumed innocent unless
and until proven guilty beyond a reasonable
doubt.
A copy of this release can be found on
the Office of the Insurance Fraud Prosecutor's
Web site at: www.NJInsuranceFraud.org/.
