newjerseynewsroom.com

Facing 5 years in prison

A South Jersey man has pleaded guilty to billing insurance companies for physical therapy treatments he was not licensed to perform.

John R. Lundy, 49, of Blackwood, pleaded guilty to second-degree health care claims fraud before state Superior Court Judge Louise D. Donaldson in Camden, state Acting Insurance Fraud Prosecutor Riza Dagli said Tuesday. The charge was contained in a Camden County grand jury indictment returned on Nov. 2, 2006. Lundy failed to appear when he was scheduled for trial in December 2007, at which time a bench warrant was issued for his arrest. He remained a fugitive until Sept. 20.

Donaldson scheduled sentencing for March 4. Under the plea agreement, the state will recommend a sentence of five years in state prison. Lundy will be ordered to pay $133,760.10 in restitution and may also face civil insurance fraud fines.

At the guilty plea hearing, Lundy admitted that between 1998 and 2002, he fraudulently represented to patients and insurance companies that he was a licensed physical therapist. Lundy submitted more than $300,000 in fraudulent claims, most of which were for services provided to persons who had been injured in motor vehicle accidents. Several insurance companies received and paid a portion of these claims, including Liberty Mutual Insurance Co., Allstate Insurance Co., State Farm Insurance Co. and First Trenton Indemnity Co.

The investigation began when NJM Insurance Group referred the matter to the state Office of the Insurance Fraud Prosecutor.

Detective Anne Hayes, Civil Investigator Shawn Stewart and Deputy Attorney General Peter W. Lee were assigned to the investigation. Deputy Attorney General Geraldine D. Zidow is prosecuting the case.

— TOM HESTER SR., NEWJERSEYNEWSROOM.COM