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For Immediate Release:  
For Further Information Contact:
November 1, 2005

Office of The Attorney General
- Peter C. Harvey, Attorney General
Division of Criminal Justice
- Vaughn L. McKoy, Director
Office of the Insurance Fraud Prosecutor
- Greta Gooden Brown, Insurance Fraud Prosecutor

 

Rachel Sacharow
609-984-1936

 

Essex County Businessman Charged in Medicaid Transportation Fraud Scheme
Defendant Allegedly Fabricated More than 420 Transports that Never Occurred...


TRENTON - Criminal Justice Director Vaughn L. McKoy announced that the Division of Criminal Justice - Office of Insurance Fraud Prosecutor has obtained a State Grand Jury indictment charging an Essex County businessman and his corporation with Health Care Claims Fraud and Medicaid Fraud in connection to a Medicaid transportation fraud scheme. The Medicaid Program provides transportation to and from doctors’ offices, hospitals, and other medical providers to persons who may not otherwise be able to afford such services.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Dwayne Smith, 40, of Elm Street, Montclair, Essex County, and his company, Smith and Williams Transportation Inc.(SWT), 12-14 Elm Street, Montclair, were charged with Health Care Claims Fraud (2nd degree) and Medicaid Fraud (3rd degree). If convicted on both counts, Smith faces up to 13 years in state prison and a fine of up to $160,000. SWT faces a fine of up to $160,000.

The Oct. 28 indictment alleges that between March 21, 2003 and May 20, 2004, Smith, through SWT, fraudulently billed the Medicaid Program for transportation services in connection with medical treatments of Medicaid patients. It is charged that SWT falsely billed Medicaid for more than 420 transports that never took place and that Smith and SWT fraudulently stole more than $12,600 through the alleged scam.

State Investigator Christine Barclay and Deputy Attorney General Riza Dagli were assigned to the investigation. DAG Dagli represented the Division of Criminal Justice - Office of Insurance Fraud Prosecutor before the State Grand Jury.

An indictment is merely an accusation. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

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