NJ Governor Appoints Chillemi for State’s Top Insurance Fraud Prosecutor Post

New Jersey Gov. Chris Christie has named his nominee for the state's top insurance fraud prosecutor, announcing he has chosen Ronald Chillemi, who spent nine years as an assistant U.S. attorney.

Chillemi, 43, served as a federal prosecutor in Camden and Newark for nine years. During that time, Chillemi prosecuted a series of significant white-collar crime cases and successfully tried numerous jury trials. Chillemi also spent two years at Philadelphia-based Dilworth Paxson LLP, and served four years as an Assistant District Attorney in Philadelphia, where he prosecuted a range of major felony cases.

Chillemi's nomination will now be sent to the Senate. In the meantime, he will serve as the office's acting chief fraud prosecutor.

The Office of the Insurance Fraud Prosecutor was created in 1998 to spearhead investigations into insurance and Medicaid fraud. In his new role, Chillemi will oversee 125 lawyers, investigators and other staff members and will answer to Attorney General Paula Dow and Criminal Justice Director Stephen Taylor.

Chillemi is taking over from John Kennedy, who had been serving as the office's acting administrator.

New Jersey has seen a number of insurance fraud cases in recent months that garnered state and national headlines.

In February, federal prosecutors charged Donald Bargholz, the former controller of New Jersey-based Smith Gatta Gelok, for attempting to cover up a $20 million loan scheme in which a former colleague applied for premium financing for clients who didn't need it and used the funds to buy luxury cars and jewelry (BestWire, Feb. 17, 2011).

In December, state regulators filed charges against Beverly Stewart, a New York-licensed insurance agent, for her alleged role in an insurance fraud involving applications for multimillion-dollar life insurance policies (BestWire, Dec. 17, 2010).

(By Jeff Jeffrey, Washington Correspondent: jeff.jeffrey@ambest.com)