Essex County, New Jersey Lawyer and 20 Other Defendants Charged in Staged Accident Auto Insurance Conspiracy

Two Defendants and Law Firm Previously Charged as Part of Ongoing Investigation

June 19, 2007 -- TRENTON - New Jersey First Assistant Attorney General Anne Milgram and Criminal Justice Director Gregory A. Paw announced today that an Essex County lawyer, his law firm, and 20 other individuals have been charged as part of an ongoing insurance fraud investigation targeting the illegal use of runners and staged automobile accidents.

According to Insurance Fraud Prosecutor Greta Gooden Brown, the defendants were charged late Friday in four separate indictments. The first indictment charged Irwin B. Seligsohn, Esq., 71 of Kinnelon; Dannie Campbell, Sr., 56, of Newark, Andre M. Johnson, 32, of Newark, Edward Davis, 33, of Newark, and Goldberger, Seligsohn & Shinrod, PA, a law practice located at 735 Northfield Ave., West Orange, with second-degree conspiracy to commit health care claims fraud. The indictment also charges Seligsohn, Campbell and Goldberger with second-degree health care claims fraud. Campbell, Johnson and Davis were charged with an additional count of second-degree health care claims fraud.

According to Paw, the first indictment returned by the Essex County grand jury alleged that between July 17, 1998 to June 3, 2003, Irwin B. Seligsohn, Dannie Campbell, Sr., Andre Johnson, Edward Davis, and the law firm of Goldberger, Seligsohn, & Shinrod, PA, conspired to submit insurance claims for a fake auto accident. The accident was purported to have occurred at intersection of Leslie and Shaw Streets in Newark. Following the “accident,” approximately $18,000 in bodily injury insurance claims were allegedly submitted to Allstate Insurance Company. In addition, Allstate allegedly paid approximately $14,500 in Personal Injury Protection (PIP) payments to health care providers for treatments rendered to some of the conspirators in the purported accident.

The second indictment charged Edward Campbell, Jr., aka Tariq Campbell, 37, of Elizabeth; Michael Ashford, 34; Deneen Woodard, 28; and Robert Woodard, age unknown; and Anthony Dortch, 41, all residing in Newark; Tahesha Boss, aka Tanisha Boss; Rabya Boss, 30; Nathaniel Mitchell, 54; and Anton Mitchell, all residing in East Orange; with conspiracy to commit health care claims fraud and health care claims fraud, both second-degree. The indictment alleges that between Dec. 19, 1998 and Jan. 14, 2003, Campbell, Jr., set up a fake/staged accident involving Dortch, Tanisha Boss, Rabya Boss, Nathaniel Mitchell, Anton Mitchell, Ashford, and Deneen Woodard, and Robert Woodard. It is alleged that the defendants conspired to submit insurance claims for the fake auto accident. The accident was purported to have occurred at the intersection of Ferry and Jefferson streets in Newark and involved a 1990 Dodge van. It is charged that, after the “accident,” lawsuits were filed and more than $30,000 in bodily injury settlements were paid, in addition to PIP payments made to health care providers for treatments rendered to some of the conspirators totaling more than $25,000. The claims were submitted to the Eagle Insurance Company and Rutgers Casualty Insurance Company.

The third indictment charged Edward Campbell, Jr., Sophia Green, 44, of Newark; Eugene Jackson, 55, of East Orange; and Tish Lee, 37, of Newark with second-degree conspiracy to commit health care claims fraud and as well as second-degree health care claims fraud. The indictment alleges that between Aug. 7, 2000 and Jan. 21, 2003, the defendants conspired to submit insurance claims for a fake auto accident. The accident purported to have occurred when Campbell alleged that his 1999 Lincoln Navigator was rear ended on Cordier Street in Irvington. It is alleged that $20,000 was paid by Clarendon Insurance Company to health care providers for treatments rendered to some of the conspirators.

The fourth indictment charged Felicia Crute, 40; Trojah Irby, age unknown; Aaron Green, 25, all of whom reside in Newark; and Katuwan Thomason, 27, of Irvington and Newark, with second-degree conspiracy to commit health care claims fraud and second-degree health care claims fraud. The indictment alleges that on Aug. 30, 2000, Edward Campbell, Jr., Felicia Crute, Trojah Irby, Aaron Green, and Katuwan Thompson conspired to submit insurance claims for a fake auto accident. The accident was purported to have occurred when a 1987 Acura Legend was hit in the rear while making a turn onto 18th Avenue from Irvine Turner Boulevard in Newark. It is charged that approximately $11,000 in PIP treatment claims were filed for chiropractic treatments for some of the conspirators, and that bodily injury claims in the amount of $5,000 were filed. The claims were allegedly submitted to the State Farm Insurance Company.

State Investigator Ned Shaw, Civil Investigator Dana Basile, Analyst Kathy Ratliff, and Deputy Attorney General Andrew C. Fried were assigned to the investigation. Fried presented the case to the Essex County grand jury.

The new case will be venued in Essex County where a previously filed RICO indictment and various motions associated with the indictment have been argued, and where the defendants will be ordered to appear in court to answer the charges on a date to be determined.

The Office of Insurance Fraud Prosecutor has returned several indictments as part of this continuing racketeering and staged accident investigation. On Nov. 15, 2005, a state grand jury indictment alleging racketeering and related charges was returned naming Seligsohn, Allen Goldberger, 74, Livingston, and the law firm of Seligsohn, Goldberger & Shinrod, PA with paying runners to solicit other individuals to participate in staged automobile accidents so that automobile insurance PIP and other insurance claims could be submitted to various insurance companies. The 2005 indictment alleges that Seligsohn improperly accounted for the payments made to the runners and, as a result, Seligsohn, Goldberger and the law firm were charged with various New Jersey tax violations.

The racketeering indictment charged five persons with being “runners” for illegally receiving payments for soliciting persons to participate in staged accidents and file insurance claims. Some of the runners were charged with state income tax violations and with assisting with the submission of phony insurance claims knowing that the accidents were staged and that no one was injured. Twenty-three other people were charged as participants in phony or staged auto accidents and insurance claims as claimants.

The racketeering indictment sought the forfeiture of an estimated $5 million in financial assets obtained by the law firm of Seligsohn, Goldberger & Shinrod, PA as a result of the illegal insurance fraud scheme. The indictment seeks proceeds such as investments, bank accounts, office equipment, real estate, and other assets allegedly obtained as proceeds from engaging in theft by deception, health care claims fraud, criminal use of runners, and tax fraud.

“The use of runners has a domino effect on the insurance industry. Runners are paid to procure patients and clients,” Prosecutor Brown said. “Runners, in turn, stage accidents and urge people who are not injured to be treated for injuries. They submit false police auto accident reports and engage in fraudulent conduct which drives up the cost of auto insurance in this state.”

The indictments, which were handed up on June 15, are merely accusations. The defendants are presumed innocent until proven guilty. Under state law, second-degree crimes carry a maximum punishment of 10 years in state prison and a criminal fine of $150,000. In addition, the defendants may face civil insurance fraud fines.

Prosecutor Brown noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline 1-877-55-FRAUD or visiting the Web site www.NJInsuranceFraud.org. State regulations permit an award to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

The Office of Insurance Fraud Prosecutor was established by the Automobile Insurance Cost Reduction Act of 1998. The office is the centralized state agency that investigates and prosecutes both civil and criminal insurance fraud, as well as Medicaid fraud.

Source: New Jersey First Assistant Attorney General

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