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For
Immediate Release: |
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For
Further Information Contact: |
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December
20, 2005
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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
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Rachel
Sacharow
609-984-1936
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Former
Atlantic County Executive Pleads Guilty
to $80,000 Phony Health Insurance Coverage
Scam
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TRENTON
- Criminal Justice Director Vaughn L.
McKoy announced that a former Atlantic
County executive has pleaded guilty to
stealing more than $80,000 in a fraudulent
health insurance coverage scam.
According to Insurance Fraud Prosecutor
Greta Gooden Brown, Bernard Gelman, 65,
formerly of Atlantic Avenue, Longport,
Atlantic County, pleaded guilty before
Gloucester County Superior Court Judge
John Tomasello to a criminal Accusation
obtained by the Division of Criminal Justice
- Office of Insurance Fraud Prosecutor
charging him with theft by deception (3rd
degree). When sentenced on March 10, 2006,
Gelman faces up to five years in state
prison and a criminal fine of up to $15,000.
Gelman also faces civil insurance fraud
fines.
At the Dec. 16 guilty plea hearing, Bernard
Gelman, a senior executive at The Holt
Group (THG), located in Gloucester City,
Gloucester County, admitted that he falsified
information to obtain disability benefits
for his son, Kevin Gelman. Kevin Gelman
had been an employee at Holt Oversight
& Logistical Technologies (HOLT),
an affiliate of THG, from February 1997
to April 1998. An investigation by the
Division of Criminal Justice determined
that in July 1998, Bernard Gelman ordered
HOLT’s Director of Risk and Insurance
Management to alter the date of his son’s
resignation from the company so that he
(Kevin) could obtain disability insurance
coverage under a new policy that went
into effect after his departure. According
to the Accusation, more than $80,000 was
obtained from Prudential Insurance Company
as the result of Bernard Gelman’s
fraud.
State Investigator Anthony Butler, Civil
Investigator Janice Lucas and Deputy Attorney
General Peter W. Lee were assigned to
the investigation. DAG Lee represented
the Office of Insurance Fraud Prosecutor
at the guilty plea hearing. The investigation
was referred to the Office of Insurance
Fraud Prosecutor by Prudential Insurance
Company.
#
# #
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