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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