Complaint: Scam cost health insurance companies millions
NEWARK, N.J. (AP) — Federal authorities in New Jersey have charged a man with scamming health insurance companies out of more than $10 million.
A criminal complaint released Monday charges Jonas Knopf with a conspiracy in which he created sham companies in Virginia and Pennsylvania as well as fake employees who actually were clients seeking health insurance.
The 63-year-old Lakewood resident accepted inflated premium payments from the clients and allegedly created fake payroll payments to further the conspiracy.
The complaint alleges the conspiracy lasted from 2013 to 2017 and that three affiliates of Blue Cross Blue Shield were defrauded of more than $10 million.
Knopf was arrested Monday and made an initial court appearance but didn’t enter a plea.
His attorney said Knopf has an unblemished record and said the charges wouldn’t withstand scrutiny.
This version corrects that Knopf made an initial court appearance Monday but didn’t enter a plea.