Crime & Safety
Woodbridge Family Charged In NJ Transit Insurance Fraud Scheme
A Woodbridge man, his wife and nephew were charged in an $880,000 insurance fraud scheme. The man and his nephew work for NJ Transit.
WOODBRIDGE, NJ — A Woodbridge man, his wife and his nephew were arrested Wednesday and charged in an $880,000 insurance fraud scheme, according to the Essex County Prosecutor.
The man and his nephew are both NJ Transit conductors.
The Woodbridge man, David A. Rasmussen, 55, is the delegate recommended by the NJ Transit workers' union to serve as a member of the NJ Transit board. His nephew is Raymond Giovanne, 33, who also lives in Woodbridge.
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Rasmussen and his wife, Suzanne Rasmussen, 52, were each arrested and charged with one count of conspiracy to commit insurance fraud and one count of theft by deception.
The Rasmussens were arrested at their Woodbridge home Wednesday. Giovanne was arrested at NJ Transit headquarters in Newark.
Find out what's happening in Woodbridgefor free with the latest updates from Patch.
All three are accused of participating in a scheme to defraud NJ State Blue Cross/Blue Shield, which provides health insurance coverage to state employees, including NJ Transit employees.
The investigation started when Blue Cross/Blue Shield, working with the FBI, contacted NJ Transit employees being targeted for a pyramid-style prescription fraud scheme, said acting Essex County Prosecutor Theodore Stephens.
The scheme was allegedly carried out by using legitimate employees and their personal information to get doctors to write unnecessary prescriptions for compounded medications such as pain creams and scar creams following a telemedicine visit.
The alleged illegal activity began in January 2016 and continued to February 2017.
Prosecutors say that Suzanne Rasmussen recruited ten NJ Transit employees to submit their insurance information to doctors and pharmacies, resulting in $889,857 being paid by the health care insurance carrier.
Assistant Prosecutor Cynthia Teller, who is handling the case, said the case is part of a larger criminal enterprise involving other defendants who were prosecuted by the U.S. Attorney’s Office.
All three are scheduled to make their first court appearance on Aug. 27.
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