Two Camden City, New Jersey Police Officers Indicted on Charges of Official Misconduct And Insurance Fraud

November 16, 2007 -- TRENTON - New Jersey Attorney General Anne Milgram and Criminal Justice Director Gregory A. Paw announced that two Camden City police officers were indicted today on charges of official misconduct, conspiracy and insurance fraud.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Darryl Miller, 41, of Sicklerville, a 21-year veteran of the Camden Police Department, and Fred Jefferson, 42, also of Sicklerville, a 17-year veteran of the Camden Police Department, were charged with two counts of second-degree conspiracy, one count of second-degree official misconduct, one count of second-degree insurance fraud, one count of second-degree theft by deception and 19 counts of third-degree tampering with public records.

The state grand jury indictment alleges that between Dec. 1, 2002 and Dec. 31, 2005, Miller and Jefferson defrauded three insurance companies – New Jersey Manufacturers Insurance Company, Liberty Mutual Insurance Company, and AAA Mid-Atlantic Insurance Company – out of more than $150,000 by falsifying application and renewal forms for auto insurance policies. Miller and Jefferson, in addition to being police officers, owned, operated and controlled MJ Transportation Company LLC, a non-emergency medical transportation business that transported patients from home to doctors’ offices and other places for diagnostic testing and medical treatments. The Camden County Board of Social Services utilized MJ Transportation to transport patients to and from medical treatments.

The indictment alleges that Miller and Jefferson illegally obtained required insurance on the vans operated by MJ Transportation at a substantially lower cost by falsely claiming that the vans were not being used in a commercial enterprise but were limited to personal use. It is also alleged that motor vehicle registration forms filed with the New Jersey Motor Vehicle Commission falsely indicated that the vans were only used for personal transportation.

One of the vans purportedly used for personal use was involved in a fatal accident in 2004. Due to the alleged fraud, the victim’s family was denied compensation, since the van was not properly insured. The matter is currently in litigation.

The indictment alleges that Miller and Jefferson allegedly made such misrepresentations concerning at least eight transportation vans that were used commercially by MJ Transportation Company. As a result, they allegedly saved approximately $9,000 per vehicle per year.

State Investigator George Meyers Jr., Civil Investigator Patricia Barry, and Deputy Attorney General Susan Kase were assigned to the investigation. Kase presented the matter to the state grand jury.

“Our office is committed to protecting New Jersey residents from unscrupulous acts by combating insurance fraud in any form it takes,” said Insurance Fraud Prosecutor Brown. “It is particularly disturbing when sworn police officers violate the public’s trust by participating in insurance fraud schemes.”

Insurance Fraud Prosecutor Brown thanks New Jersey Manufacturers Insurance Company, Liberty Mutual Insurance Company, and AAA Mid-Atlantic Insurance Company for their assistance in this matter.

The indictment is merely an accusation and the defendants are presumed innocent until proven guilty. Second-degree crimes carry a maximum punishment of 10 years in state prison and a criminal fine of $150,000, while third-degree crimes carry a maximum punishment of five years in prison and a fine of $15,000. Miller and Jefferson also may face civil insurance fraud fines.

The indictment was handed up to Superior Court Judge Neil H. Shuster in Mercer County. Judge Shuster assigned the case to Superior Court in Camden County, where Miller and Jefferson will be ordered to appear at a later date.

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 Attorney General

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