{"id":1238,"date":"2017-10-03T14:40:09","date_gmt":"2017-10-03T18:40:09","guid":{"rendered":"https:\/\/shorebeat.com\/tomsriver\/?p=1238"},"modified":"2017-10-03T14:40:09","modified_gmt":"2017-10-03T18:40:09","slug":"toms-river-man-gets-jail-time-in-workers-comp-fraud-case","status":"publish","type":"post","link":"https:\/\/shorebeat.com\/tomsriver\/2017\/10\/toms-river-man-gets-jail-time-in-workers-comp-fraud-case\/","title":{"rendered":"Toms River Man Gets Jail Time in Workers Comp Fraud Case"},"content":{"rendered":"
\"Albert

Albert Boufarah<\/p><\/div>\n

A Toms River man who ran a local business recycling electronic equipment has been sentenced to spend time in prison after defrauding an insurance company and the workers\u2019 compensation system, officials announced Tuesday.<\/p>\n

Albert Boufarah, 50, of Toms River, and his company Supreme Asset Management Recovery (SAMR), in Lakewood, are also liable for restitution to the insurance company, under the sentence handed down by Superior Court Judge Wendel E. Daniels. He\u00a0was sentenced to three years in prison, and his company was fined $100,000, for defrauding an insurance carrier out of nearly $600,000 in workers\u2019 compensation coverage by lying about the kind of work their employees did.<\/p>\n

\u201cFor these defendants, lying to their insurance carrier to save money on premiums turned out to be very costly,\u201d said Attorney General Christopher S. Porrino, in a statement. \u201cThe sentence imposed on them should act as a deterrent to others tempted to cut business costs by breaking the law.\u201d<\/p>\n

Boufarah and SAMR pleaded guilty last fall to second-degree conspiracy and insurance fraud. The defendants admitted conspiring with officials at SAMR and a Neptune insurance agency, The Amato Agency, LLC, to misclassify SAMR\u2019s warehouse workers as office staff on insurance applications in order to obtain much lower premiums for workers\u2019 compensation coverage.<\/p>\n

According to the charges against them, the defendants falsely asserted that all but a handful of SAMR\u2019s 50-72 employees were office workers performing clerical tasks, but in reality most of them were warehouse workers performing higher-risk jobs like disassembling and refurbishing televisions, computers, and other electronic devices. Coverage premiums are higher for employees performing higher risk jobs.<\/p>\n

The scheme bilked New Jersey Casualty (NJC), a subsidiary of New Jersey Manufacturer\u2019s Insurance Company (NJM), out of $598,282 from January 2011 through June 2014.<\/p>\n

Also charged in the scheme:<\/strong><\/p>\n