Office of Insurance Fraud Prosecutor Peter C. Harvey, Attorney General Vaughn L. McKoy, Director, Div. of Criminial Justice Greta Gooden Brown, Insurance Fraud Prosecutor August 4, 2003 DIVISION OF CRIMINAL JUSTICE - OFFICE OF INSURANCE FRAUD PROSECUTOR CHARGE ESSEX COUNTY CHIROPRACTOR AND 7 OTHERS AS PART OF STAGED AUTOMOBILE ACCIDENT & INSURANCE FRAUD SCHEME TRENTON - Attorney General Peter C. Harvey announced that an Essex County chiropractic physician and seven other Essex County residents have been charged by the Division of Criminal Justice - Office of Insurance Fraud Prosecutor with staging numerous phony automobile accidents in order to submit fraudulent insurance claims totaling more than $50,000. "Insurance fraud is but one of the reasons New Jersey's auto insurance rates are among the highest in the nation. Fraudulent schemes such as 'staging' fake automobile accidents to claim insurance monies is nothing less than corporate corruption," Attorney General Harvey said. "The allegations contained in these indictments are extremely serious and represent a significant theft or attempted theft of health care monies -- monies dedicated to providing desperately needed health care services to those who can least afford to pay for even basic medical services. The Division of Criminal Justice and the Office of Insurance Fraud Prosecutor is taking direct aim at such corrupt schemes and will investigate, arrest and prosecute anyone involved in insurance fraud." According to Vaughn L. McKoy, Director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden Brown, the defendants were charged in two separate State Grand Jury indictments with numerous counts of Health Care Claims Fraud, criminal use of runners, theft and attempted theft by deception. One defendant was charged with misconduct by a corporate official. The second and third degree charges contained in both indictments are related to allegations that the defendants staged phony automobile accidents, submitted phony Personal Injury Protection (PIP) insurance claims, and billed insurance companies for chiropractic treatments that were never rendered. The indictments charge the following individuals: . Franca DiLisio, 36, Hening Drive, Fairfield, Essex County. DiLisio, a chiropractor licensed to practice in New Jersey, was charged with Health Care Claims Fraud, theft by deception, criminal use of runners and misconduct by a corporate official; . Rolando Pierre, 38, Ellery Avenue, Irvington, Essex County. Charged with Health Care Claims Fraud, theft by deception and criminal use of runners; . Gerard Blanc, 48, Buckingham Road, West Orange, Essex County. Charged with Health Care Claims Fraud, theft by deception and criminal use of runners; . Marie Amay, 38, Highland Avenue, Orange, Essex County. Charged with Health Care Claims Fraud and attempted theft by deception; . Imaguerite Francois, 33, Chapman Place, Irvington, Essex County. Charged with Health Care Claims Fraud and attempted theft by deception; . Mimose Pierre, 55, Summit Avenue, East Orange, Essex County. Charged with Health Care Claims Fraud and attempted theft by deception; . Joane Amay, 32, High Street, East Orange, Essex County. Charged with Health Care Claims Fraud and attempted theft by deception; and . Murielle Francois, 25, Chapman Place, Irvington, Essex County. Charged with Health Care Claims Fraud and attempted theft by deception. A second degree crime carries a maximum penalty of up to ten years in state prison and a fine of up to $150,000. A third degree crime carries a maximum punishment of up to five years in state prison and a fine of up to $15,000. Additionally, the defendants face the possibility of the imposition of civil insurance fraud fines pursuant to the Insurance Fraud Prevention Act. DiLisio's case will be referred to the Board of Chiropractic Examiners for appropriate action with respect to her license to practice chiropractic medicine. According to Insurance Fraud Prosecutor Brown, the first State Grand Jury indictment alleges that between May 1, 1998 and October 4, 2000, DiLisio, with the assistance of Gerard Blanc and Rolando Pierre serving as "runners," arranged staged accidents so that DiLisio could treat the occupants of the vehicles involved in the staged accidents for purported injuries and then bill insurance carriers for Personal Injury Protection (PIP) insurance claims. (A runner is a person paid by a licensed medical service provider to procure patients for a medical practice so that insurance claims can be submitted to insurance companies for providing treatment. New Jersey's criminal runners statute became effective on July 12, 1999. It criminalizes the use of runners by health care professionals and their employees.) The indictment also alleges that between May 1, 1998 and October 4, 2000, DiLisio and the other defendants submitted 12 false claims totaling more than $36,380 to Allstate Insurance Company, Selective Insurance Company, G.U.F.A.C. Insurance Company and Colonial Penn Insurance Company. The claims represented 302 separate dates on which the carriers were billed for chiropractic treatments to persons other than those involved in staged accidents. The second indictment charges that Marie Amay, Mimose Pierre, Joane Amay, Imaguerite Francois and Murielle Francois were the so-called occupants of the vehicles involved in the staged accidents and, as a result of the accident, sustained injuries which were treated by DiLisio. As part of the scheme, it is alleged that DiLisio submitted 16 PIP insurance claims to Allstate Insurance Company, Selective Insurance Company, Colonial Penn Insurance Company, Crawford Insurance Company and Ohio Casualty totaling $65,153. None of the 16 PIP claims were paid. Several of the insurance companies are pursuing civil actions and/or arbitration. The indictments were handed up to Mercer County Superior Court Judge Linda R. Feinberg, the Assignment Judge in charge of the State Grand Jury. The cases will be assigned to the Essex County Superior Court for trial. The defendants will be ordered to appear for arraignment and bail...."