TRENTON – A former Brick Township employee, and the daughter of the former mayor, pleaded guilty to stealing almost $1 million from the township’s health insurance plan, according to a press release from the state attorney general and the Office of the Insurance Fraud Prosecutor.
Kim Bogan, 52, of Brick, pleaded guilty to theft by deception in a hearing before Superior Court Judge Linda G. Baxter in Ocean County.
She is scheduled for sentencing on Jan. 2. As part of her plea agreement, the state will seek a five year prison sentence, and she will have to pay the township $941,354.77 in restitution.
She admitted in court that between January of 2011 and April of 2017, she helped an out-of-state health care provider file faulty claims under her name and for people on her policy.
The fraudulent charges were made out to her brother, Dr. Glenn Scarpelli, a chiropractor. He and his wife committed suicide earlier this year.
“We uncovered the theft, notified the attorney general and fired Kim Bogan,” Mayor John Ducey said. “The next step is getting back the stolen money. We will take every legal action available to recoup these funds.”
While the information from the attorney general’s office state that Bogan admitted to defrauding the town from 2011 to 2017, a press release from the township said that she had been submitting claims for “phantom chiropractic services since at least 2007.” Ducey took office in 2014.
The fraud was uncovered, Ducey said, when Brick Township Administrator Joanne Bergin noted the discrepancy during a review of health care claims. Bogan had been employed by the township for over 30 years and served in various positions.
“In the course of a review of health care claims, we noticed an unusual amount of claims by one employee for chiropractic services administered in New York City. We immediately contacted Horizon, our health care provider and claims administrator, which referred the matter to the Attorney General for investigation and prosecution,” he said.
“The defendant allowed the practitioner to submit claims in her name for services never rendered, and endorsed the insurance checks when they were mailed to her, knowing the money was stolen,” said Attorney General Porrino. “What’s even more disturbing is that she went along with the scheme knowing that the taxpayers of Brick Township – her friends and neighbors – would be responsible for picking up the tab for the bogus claims.”
Her father, Joseph Scarpelli, was a prominent political force in Brick, and was mayor for several terms. His career ended when he was charged with extortion about a decade ago.
According to the press release, Bogan was represented by Steven Secare of Secare and Hensell. The state was represented by Deputy Attorney General Thomas G. Tresansky, Jr.
Detectives Cortney Lawrence and Jared England coordinated the investigation.
Porrino thanked Brick’s administrator Bergin, as well as Horizon Blue Cross Blue Shield Special Investigations Unit Senior Investigator Catherine Nielsen, Supervisor James Howell, and Manager Megan McCarthy for their assistance.
Anyone who wishes to report possible fraud cases are urged to do so anonymously at 877-55-FRAUD or visiting the web site at NJInsuranceFraud.org. Rewards can be given to eligible people who provide information that results in an arrest.