Essex County Chiropractor and Office Manager Plead Guilty to
$12,000 Insurance Fraud Scam

TRENTON - Division of Criminal Justice Director Gregory A. Paw announced that an Essex County chiropractor and his office manager have pleaded guilty to paying “runners” to illegally secure patients and to fraudulently increase the amount of money obtained from insurance companies.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Eugene Ruta, 43, a licensed chiropractor formerly employed at Valley Total Health Center, Orange, Essex County, pleaded guilty before Essex County Superior Court Judge Thomas R. Vena to third degree conspiracy and Health Care Claims Fraud. Ruta’s co-defendant, Andrew Farro, former office manager for Valley Total Health Center, also pleaded guilty before Judge Vena to a charge of conspiracy to commit Health Care Claims Fraud and criminal use of runners. The defendants were charged via a May 12, 2005 state grand jury indictment. A third-degree carries up to five years in state prison and a fine of up to $15,000 upon conviction. In addition, both defendants face potential civil insurance fraud fines.

In pleading guilty, Farro admitted that he paid “runners” up to $2,000 to solicit patients for treatment at the Valley Total Health Center. As a result of using “runners,” Farro submitted more than $12,490 to Parkway Insurance Company for medical services purportedly provided to the “patients” -- mdedical services that were never provided. The investigation determined that Parkway ultimately paid more than $5,900 to Valley Total Health Center as reimbursement.

Deputy Attorney General Andrew Fried coordinated the investigation and prosecution. The Newark Police Department and Parkway Insurance Company assisted in the investigation. DAG Fried represented the Division of Criminal Justice - Office of Insurance Fraud Prosecutor at the guilty pleas.