N.J. Insurance Fraud Unit Itself Target of Probe Over Employee Payroll

Insurance Journal ^ | May 31, 2005 | Insurance Journal and AP

[Unknown Freeper]

New Jersey's award-winning office created to root out insurance fraud is under scrutiny itself, with the state auditor probing allegations the insurance industry was billed about $4 million for employees who never worked on fraud cases.

The probe stems from a letter to a ranking state senator by a retired investigator from the state Division of Criminal Justice who said 43 employees had their salaries paid with insurance industry money but did little or no work on fraud cases.

"We investigate doctors for submitting false bills to insurance companies, and we put doctors in jail for that. What's the difference here?'' Edward Buttimore, the retired investigator, told The Star-Ledger of Newark.

Criminal Justice Director Vaughn McKoy, whose agency oversees the New Jersey Office of Insurance Fraud Prosecutor, denied the office misspent money.

[Unknown Freeper]

Submitted for your information and comments...

[Unknown Freeper]

Just when you thought NJ couldn't seem any worse...

[Calpernia]

The Fraud Unit is a Fraud!

[Jersey Republican Biker Chick]

Why does this not surprise me. I guess when you live in NJ your whole life you get numb to this crap.

[Fixit]

A few years back the folks at the NJ Tax Amnesty ran an ad that was touted thusly on its (lapsed registration)website:

The theme of the ad campaign will be the Motown classic, "Nowhere To Run, Nowhere to Hide," originally recorded by Martha Reeves and the Vandellas. The song has been re-recorded for use in the Amnesty advertising.

I wonder where these pigs'll try to hide?

[Grampa Dave]

Hey, this is how Liberals make money for their state or organization.

Just move on! Nothing to see here! :)

[Pharmboy]

Well, at least the media is talking about it more these days. And, I'm sure the NJ wiseguys are not thrilled about the popularity of The Sopranos...

[TruthShallSetYouFree]

This is going to make it tough for the folks who publish the dictionary. It was virtually a sure thing that when you looked up "irony," you would get a reference to convicted sex offenders receiving free Viagra from the state. But now, with the insurance fraud division committing fraud, there is going to be some competition.

[Montfort]

But . . . But . . . I thought the State was above the law. Anything the State does is okay, because it has sovereignty, yada yada yada.

[pepsi_junkie]

As a taxpayer in NJ, if they an keep down costs by cheating the insurance companies, I'm all for it! I'd be outraged with any other industry, but since the insurance companies have bought all the politicians and hence made their product compulsory and outrageously expensive, and then get the state to act as their enforcers at taxpayer expense. I say live by the sword, die by it.

And lest you think I exaggerate, allow me to pose a question: what is a worse offense, driving drunk or driving without insurance? Well, the punishment for driving drunk is bad in NJ, 6 months without a licence, as it should be since innocent people are put at extreme risk. But its a year for driving without an insurance policy. Who owns who?

[Unknown Freeper]

So, are you saying it is okay for this state agency itself to commit fraud by paying employees who are not working?

[pepsi_junkie]

Waste no tears crying for the insurance companies. They will recover their costs and then some. They own the politicians in NJ.

[Unknown Freeper]

With all due respect, Pepsi, my question was not about the insurance companies. (Although, the individual customers are the ones who will end up paying the costs you mention.) My question was regarding whether you think it is okay for this state agency to commit fraud.

Regards,

[pepsi_junkie]

Of course it's not okay for the government at any level to commit fraud. And two wrongs dont make a right.

Then again, I dont know of many industries that have a government agency set up to investigate people on their behalf either. Or that have laws making their products compulsory. Let's face it, they are one step away from actually being part of the government, except they keep all the profits. As a consumer, taking on the insurance companies isnt much easier than taking on the IRS.

So in the end, you win. I do not support government corruption and thus think the agency in question should be made to make restitution and otherwise reprimanded.