New Jersey: Louisiana Woman Pleads Guilty to Stealing Nearly $80,000 by Filing Fraudulent Insurance Claims

December 20, 2007 -- TRENTON - New Jersey Attorney General Anne Milgram and Criminal Justice Director Gregory A. Paw announced that a Louisiana woman pleaded guilty today to stealing nearly $80,000 by filing hundreds of fraudulent claims for services that were never provided.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Carol Sadowsky, 56, formerly of River Vale and currently of Jefferson, Louisiana, pleaded guilty before Superior Court Judge William C. Meehan in Bergen County, to a criminal accusation which charged her with third-degree insurance fraud.

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At the guilty plea hearing, Sadowsky admitted that between Jan. 1, 1999 and Dec. 31, 2005, she submitted approximately 600 fraudulent claims to Horizon Blue Cross Blue Shield of New Jersey for psychological services for members of her family that were never provided. Sadowsky also admitted that she altered 38 additional, legitimate claims, which she changed in order to perpetuate the fraud. Sadowsky admitted that, as a result of the fraudulent claims, she was paid almost $80,000. Sadowsky repaid all of the money to Horizon Blue Cross Blue Shield.

State Investigator Michael Rasar and Deputy Attorney General James F. Flanagan were assigned to the investigation. Flanagan represented the Office of Insurance Fraud Prosecutor at the guilty plea hearing.

This case was referred to OIFP by the Special Investigative Unit of Horizon Blue Cross Blue Shield of New Jersey which initially uncovered the fraud and assisted OIFP in the investigation. Insurance Fraud Prosecutor Brown thanked Horizon for their assistance in this matter.

Sadowsky is scheduled to appear before Judge Meehan on Feb. 29, 2008 to be sentenced. Third-degree crimes carry a sentence of up to five years in state prison and a fine of up to $15,000.

Source: New Jersey Attorney General