Pa. Man Pleads Guilty in N.J. Court to Participation in Motor Vehicle Accident Scheme

September 23, 2004

New Jersey’s Division of Criminal Justice – Office of Insurance Fraud Prosecutor announced that a Pennsylvania man has pleaded guilty to charges of conspiracy and Health Care Claims Fraud for his role in arranging a fake “jump in” motor vehicle accident in order to fraudulently obtain insurance settlement monies.

According to Vaughn McKoy, director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden Brown, David Scott, 26, formerly of Philadelphia, and currently residing in Jamison, Pa., pleaded guilty before Monmouth County Superior Court Judge Ira Kreizman to second degree charges of conspiracy and Health Care Claims Fraud. A second degree crime carries a maximum penalty of up to ten years in state prison and a fine of up to $150,000. Scott is scheduled to appear before Judge Kreizman on Dec. 3 for sentencing.

Gooden Brown said that Scott, along with co-defendants Nicole A. Barker, 20, of Irvington, Essex County and Charles Gladney, 40, of Philadelphia, were charged via a State Grand Jury indictment returned on March 2, 2004.

Barker and Gladney were charged with second degree conspiracy to commit Health Care Claims fraud. The cases against Barker and Gladney are pending in Monmouth County Superior Court.

In pleading guilty on Sept. 7, Scott, identified as Barker’s boyfriend, reportedly admitted that he conspired with Barker and Gladney to make it appear to the police and the insurance company that he (Scott) was a passenger in Barker’s car after it had been involved in a motor vehicle accident in Philadelphia on March 17, 2002. In fact, Scott was not a passenger in the vehicle and only reportedly arrived at the accident after being contacted by Barker. Gladney, a Philadelphia tow truck driver, responded to the accident.

The investigation reportedly determined that Gladney agreed to support Scott’s claim that he was a passenger in the vehicle in exchange for receiving a 20 percent “fee” on the total cost of repairs to the vehicle. In furtherance of the conspiracy, Scott obtained nearly $7,000 in medical care, including more than 20 chiropractic treatments.

The PIP and related medical bills were submitted to the Prudential Insurance Company for payment. Suspecting a potential fraud, Prudential forwarded the case to Insurance Fraud Prosecutor for investigation.

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