N.J. Businessman Charged in Medicaid Transportation Fraud Scheme

November 2, 2005

New Jersey Criminal Justice Director Vaughn McKoy announced that the Division of Criminal Justice – Office of Insurance Fraud Prosecutor has obtained a State Grand Jury indictment charging an Essex County businessman and his corporation with Health Care Claims Fraud and Medicaid Fraud in connection to a Medicaid transportation fraud scheme.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Dwayne Smith, 40, of Montclair, Essex County, and his company, Smith and Williams Transportation Inc. (SWT), Montclair, were charged with Health Care Claims Fraud (2nd degree) and Medicaid Fraud (3rd degree). If convicted on both counts, Smith faces up to 13 years in state prison and a fine of up to $160,000. SWT faces a fine of up to $160,000.

The Oct. 28 indictment alleges that between March 21, 2003 and May 20, 2004, Smith, through SWT, fraudulently billed the Medicaid Program for transportation services in connection with medical treatments of Medicaid patients.

It is charged that SWT falsely billed Medicaid for more than 420 transports that never took place and that Smith and SWT fraudulently stole more than $12,600 through the alleged scam.

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