Commissioner Badolato Talks about the Importance of Fighting Insurance Fraud

WESTFIELD, N.J., May 23 -- The New Jersey Department of Banking and Insurance issued the following news release:

Department of Banking and Insurance Commissioner Richard J. Badolato last Friday emphasized the high cost of insurance fraud to New Jerseyans and the importance of fighting it during the keynote speech at a Crime Stoppers of Union County luncheon held at Echo Lake Country Club in Westfield. Badolato addressed about 50 members of the organization which is dedicated to encouraging community members to report criminal activity.

"Like Crime Stoppers, an effective program that seeks community involvement in fighting crime, DOBI seeks to partner with insurance consumers, insurance companies, the Office of Insurance Fraud Prosecutor (OIFP) and county prosecutors to prevent insurance fraud and enforce the law when insurance fraud is committed," said Commissioner Badolato. "Insurance fraud costs each one of us $1300 every year. We are all paying a hefty price for insurance fraud."

Commissioner Badolato also highlighted the accomplishments of the Bureau of Fraud Deterrence, which operates within DOBI and serves as the civil arm of insurance fraud enforcement.

In 2016, the Bureau issued consent orders that included fines, surcharges and restitution against insurance fraudsters that totaled more than $4.4 million.

The Bureau continues to enhance its efficiency by investing in equipment and staff training as it now accepts all insurance company fraud referrals electronically. Last year, the Bureau established a Major Fraud Unit that investigates larger, complex, multi-transactional fraud schemes.

In January of this year, the Department filed a lawsuit jointly with Allstate of New Jersey Insurance Company alleging that Anhuar Bandy of Colts Neck operated a sophisticated, well organized state-wide personal injury mill with his brother, Karim Bandy. The operation involved 78 defendants, including runners who recruited individuals involved in auto accidents and then referred them to lawyers and doctors in violation of the New Jersey Insurance Fraud Prevention Act (IFPA). The Department is seeking a substantial, yet undetermined IFPA-mandated fine amount and Allstate is seeking reimbursement for personal injury protection benefits paid on behalf of its customers.

Report Fraud

New Jersey residents should report insurance fraud by calling the Bureau at 609-292-7272 x 51088, or by going to www.dobi.nj.gov and completing a complaint form online at: www.state.nj.us/dobi/consumer.htm#insurance

(Under reason of complaint, write "Fraud" in "Other Description" box.)