TRENTON – Acting Attorney General John J. Hoffman announced that the president of a Monmouth County roofing company has been indicted for allegedly stealing more than $265,000 by providing false and misleading information to the company’s workers’ compensation insurance carrier.

Charles Kelcy Pegler Sr., 55, of Spring Lake, was charged yesterday (Dec. 19) with second-degree theft by deception, second-degree false contract payment claim for a government contract, third-degree insurance fraud and fourth-degree false swearing.

Pegler is the president of Roof Diagnostics, Inc. (“RDI”), which is currently located at 2333 Highway 34 in Wall.  During the time of the alleged crime, RDI was located at 608 Brighton Avenue in Spring Lake Heights.  The indictment alleges that between June 6, 2002 and Oct. 5, 2009, Pegler stole $265,044 from New Jersey Casualty Insurance Company by creating the false impression that RDI was not a roofing company, that it did not employ roofers and that it did not install, maintain and/or repair roofs.

“This defendant had a legal responsibility to provide adequate and lawful workers’ compensation coverage for employees,” Acting Attorney General Hoffman said.  “By providing misinformation to his workers’ compensation carrier, he not only failed in this responsibility but also defrauded an insurance company out of hundreds of thousands of dollars. The cost of such fraud is passed on to consumers through increased premiums."

“The victims in this case were the insurance company, New Jersey consumers and RDI’s workers who were put in jeopardy due to Pegler’s alleged unlawful actions,” Acting Insurance Fraud Prosecutor Chillemi said.  “The Office of the Insurance Fraud Prosecutor remains vigilant to protecting all victims of insurance fraud.”   

An investigation by the Office of the Insurance Fraud Prosecutor determined that, as a result of the alleged crime, RDI paid far less in workers’ compensation insurance premiums than they should have.

The indictment further alleges that in January 2009, Pegler knowingly submitted a fraudulent claim that he was entitled to $34,295 for work that his company performed as part of a contract between RDI and the Township of Galloway.  The indictment alleges that Pegler knowingly failed to have in place proper workers’ compensation coverage for his roofing employees as required by the government contract.

Deputy Attorney General Bradford Muller, Special Deputy Attorney General Michael Locke and Detective Natalie Brotherston coordinated the investigation.  Additional investigative assistance was provided by Detective Taryn Kong and Detective Trainee Ryan Kirsh.

The indictment is merely an accusation and the defendant is presumed innocent until proven guilty.  Second-degree crimes carry a maximum sentence of 10 years in state prison and a criminal fine of up to $150,000 while third-degree crimes carry a maximum sentence of five years in state prison and a criminal fine of $15,000.  Fourth-degree crimes carry a maximum sentence of 18 months in state prison and a criminal fine of up to $10,000.

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