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04/16/2010

News / Pennsylvania Man Charged with Collecting More than $183,000 in Fraudulent Disability Claims

TRENTON - Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced that a Pennsylvania man has been indicted for allegedly collecting approximately $183,800 in fraudulent disability claims.

According to Acting Insurance Fraud Prosecutor Riza Dagli, Joseph T. Hayes, 57, of Trevose, Pennsylvania, was charged yesterday (April 15) with insurance fraud and theft by deception, both in the second degree.

The Ocean County grand jury indictment alleges that between May 13, 2002, and April 27, 2006, while living in Brick, N.J., Hayes submitted fraudulent disability insurance claims to Disability Reinsurance Management Services, Inc. based on a disability insurance policy underwritten by The United States Life Insurance Company. It is alleged that, during the time in question, Hayes obtained approximately $183,800 from The United States Life Insurance Company by reinforcing the false impression that he was totally disabled and not earning an income, when, in fact, he was not totally disabled and was earning an income, and therefore was not eligible to receive the disability payments.

Detective Natalie Brotherston, Civil Investigator Vincent Cappetta and Deputy Attorney General Geraldine D. Zidow were assigned to the investigation into this case. Deputy Attorney General Zidow presented the case to the Ocean County grand jury. Acting Insurance Fraud Prosecutor Dagli thanked Disability Reinsurance Management Services, Inc. and The United States Life Insurance Company for their assistance in the investigation.

The indictment is merely an accusation and the defendant is presumed innocent until proven guilty. Second degree crimes carry a maximum sentence of 10 years in state prison and a criminal fine of $150,000. Hayes may also face civil insurance fraud fines.

http://www.nj.gov/oag/newsreleases10/pr20100416b.html

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