New Jersey Brothers Charged In Insurance Fraud
Jan. 04--Two Colts Neck brothers, who pleaded guilty to operating an insurance fraud ring, face a new lawsuit.
The New Jersey Department of Banking and Insurance; Allstate New Jersey Insurance Co.; and Encompass Insurance, an Allstate subsidiary, filed a lawsuit Tuesday against Anhuar and Karim Bandy, accusing them of violating the New Jersey Insurance Fraud Prevention Act.
The brothers were among a dozen arrested by the New Jersey Office of the Insurance Fraud Prosecutor in May 2014 and charged with orchestrating a scheme in which runners beginning in 2009 visited motorists who were involved in vehicle accidents and persuaded them to use chiropractic facilities that were owned or controlled by the Bandys.
They both pleaded guilty in July 2015 to insurance fraud. Anhuar Bandy also was convicted in 2004 on charges of racketeering, conspiracy, health care claims fraud and theft.
The lawsuit also says Plainfield personal injury lawyer David Walker and his paralegal Alexandra Gallegos paid kickbacks to Bandy in exchange for referring clients to their firm.
The banking department is seeking what it says is a substantial fine. And Allstate is seeking reimbursement for benefits it paid on behalf of its customers.
"These and similar alleged fraudulent activities increase the cost of insurance to consumers," Banking and Insurance Commissioner Richard J. Badolato said in a statement.
Michael L. Diamond; 732-643-4038; [email protected]
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