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For Immediate Release:  
For Further Information Contact:
December 20, 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

Former Atlantic County Executive Pleads Guilty to $80,000 Phony Health Insurance Coverage Scam

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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