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The Fraud Report

NJ Woman Admits $940K Insurance Fraud through Brother's Chiro Office

by FraudReport 6. November 2017 05:17

The daughter of a former New Jersey mayor admitted to submitting over $900K in fake insurance claims for chiropractic services from her brother, a chiropractor who committed suicide with his wife this summer after jumping off a building in New York City.

Kim Bogan, an employee of Brick Township for 30 years, pled guilty on October 24th to a single count of theft by deception. The guilty plea meant she was admitting to stealing $941,354 from the town by submitting false chiropractic claims over seven years, the state Attorney General's Office said.

According to NJ.com,Bogan, 52, admitted to submitting the claims for chiropractic services, rendered by her brother, Glenn Scarpelli, between January 2011 and August 2017, though the services were never actually rendered.

Scarpelli and Bogan are the children of former Brick mayor Joseph Scarpelli, who was sentenced in 2007 to 18 months in federal prison and fined $5,000 for taking bribes in exchange for helping a developer gain approval for construction projects.

Back in July, Glenn Scarpelli and his wife, Patricia Colant, jumped from the ninth floor of the building in New York City where Scarpelli had his chiropractic office. At the time, The New York Post reported that sources said the couple was deeply in debt.

The mayor of Brick, NJ, John Ducey, said the theft was stumbled upon when a township administrator named Joanne Bergin noticed a problem during a review. She said one employee had an "unusual" amount of claims for chiropractic services from a provider in New York City.

Because the township is self-insured, it conducts reviews of claims every six months to anticipate future insurance expenses, Ducey said.

After discovering the issue, township officials notified the administrator of their program, Horizon Blue Cross Blue Shield, and fired Bogan.

According to Attorney General Christopher Porrino, Bogan is scheduled to be sentenced on January 2nd, when prosecutors will recommend she serve a five-year prison term. He also noted that she will be required to pay the money back to the township.

"The defendant allowed the practitioner to submit claims in her name for services never rendered, and endorsed the insurance checks when they were mailed to her, knowing the money was stolen," Porrino said. "What's even more disturbing is that she went along with the scheme knowing that the taxpayers of Brick Township - her friends and neighbors -would be responsible for picking up the tab for the bogus claims."

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Categories: Scandalous Schemes

Ex NY Postal Worker Must Repay $430,000 for Fraud

by FraudReport 4. January 2017 03:59

A former U.S. Postal worker from New York was recently sentenced to a year and 10 months in federal prison. She was accused and convicted of collecting nearly $430,000 in disability benefits relating to her 1987 back injury.

Carol-Lisa Gutman, 66, must repay the $429,677 she ripped off from the U.S. Department of Labor Office of Workers Compensation Programs. She was convicted by a federal jury back in June of all eight counts she faced, including wire fraud, federal employees' compensation fraud and theft of government money.

According to the Times Union, Gutman claimed a back injury after being hurt while lifting a sack of mail on July 13, 1987. Afterwards she became eligible for disability compensation benefits, which she collected monthly.

"For nearly 15 years, at least, the defendant made a mockery of the OWCP worker's compensation program, continually making hyperbolic (but difficult-to-disprove) statements about her supposed back injury and its effect on her day-to-day life," Assistant U.S. Attorney Michael Perry wrote in a Nov. 14 recommendation letter to Senior Judge Frederick Scullin, who imposed the sentence in U.S. District Court in Syracuse.

The prosecutor asked the judge to sentence Gutman for at least three years and one month; and though the judge did sentence her to one year and 10 months for each count, they are set to run concurrently. Gutman had several doctors convinced that she lacked the ability to sit, needed to stand in a hot tub for 15 hours a day and was inactive and in constant back pain. She also claimed she could do no manual labor.

Though, as the prosecutor wrote, there was video evidence and testimony showing that she mowed her lawn, shoveled snow, "carried around heavy pails of yard waste, raked leaves, and otherwise meticulously cared for her garden and award-winning lawn.”

Perry also noted that Gutman's husband admitted during cross-examination that his wife actually did not spend 15 hours a day in the hot tub.

In April 2013, Gutman told a doctor she is essentially homebound and does not shop. Then low and behold, later that day, federal investigators photographed her shopping at several locations "without any apparent distress or outward evidence of pain,” Perry wrote.

He also stated, "In spinning her many tall tales, the defendant was careful to avoid detection and she did so successfully for many years at great expense to the public.”

Scullin ordered Gutman to report to prison on January 17th.

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Categories: Scandalous Schemes