N.J. Man Pleads Guilty in Medicaid Scam

July 5, 2005

New Jersey Division of Criminal Justice Director Vaughn McKoy announced that an Essex County man has pleaded guilty to fraudulently misrepresenting that he and his family were qualified for Medicaid benefits.

According to Insurance Fraud Prosecutor Greta Gooden-Brown, Anthony Murphy, 49, of West Orange, Essex County, pleaded guilty before Essex County Superior Court Judge Michael Ravin to a criminal Accusation filed by the Division of Criminal Justice. The Accusation charged Murphy with Medicaid Fraud, and failure to pay income taxes, (both 3rd degree). When sentenced on Sept. 9, Murphy faces up to eight years in state prison and a fine of up to $25,000.

At the June 29 guilty plea hearing, Murphy reportedly admitted that between May 30, 2001 and March 30, 2004, he wrongfully obtained health benefits from the Medicaid Program. Murphy admitted that he applied for FamilyCare for himself, his wife, and his three children by falsely advising the Division of Medicaid Assistance and Health Services that he did not have health insurance through his employment and could otherwise not afford health coverage.

An investigation by the Division of Criminal Justice – Office of Insurance Fraud Prosecutor determined that Murphy falsely advised Medicaid that his income level qualified him to enroll in the FamilyCare program sponsored by Medicaid.

Murphy reportedly further admitted that he is a self-employed contractor and the owner of A. Murphy Contracting. The investigation further determined that the income and profits Murphy received from that business far exceeded the $25,071 per year income limit necessary to qualify for FamilyCare.

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