Former N.J. Insurance Company Employee, Boyfriend Plead Guilty in Fraud Scheme

New Jersey Attorney General Peter Harvey announced that a former Middlesex County-based insurance company employee and her boyfriend pleaded guilty in Morris County Superior Court to charges they concocted an insurance fraud scheme that netted more than $25,000 in stolen automobile accident settlement monies.

According to Vaughn McKoy, director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden-Brown, Wanda Reeves, 33, of Somerset, Somerset County, and Clifford T. Baskerville, 36, also of Somerset, each pleaded guilty before Morris County Superior Court Judge John Harper to multiple counts of theft by deception (2nd and 3rd degree).

The charges resulted from a State Grand Jury indictment returned on April 5 and a Morris County Grand Jury indictment returned in November, 2003. Reeves and Baskerville each face up to 10 years in state prison and a fine of up to $30,000. Sentencing is slated for Sept. 10 in Morris County Superior Court.

Gooden Brown noted that Reeves, formerly employed as a claims adjuster/processor at the Robert Plan Corporation located in Edison, Middlesex County, reportedly admitted on May 24 to issuing eight fraudulent insurance claim checks to either herself or Baskerville (her boyfriend). The checks totaled more than $25,000.

Reeves also admitted using her position as an adjuster processing legitimate automobile accident claims to issue fraudulent checks to Baskerville and others who were not involved in the accidents. Six checks were issued directly to Baskerville, while two other checks were issued to third-party payees and deposited into Baskerville’s account. Baskerville reportedly admitted assisting in the conspiracy and to negotiating the checks. The Robert Plan Corporation owns several insurance companies, including the Eagle Insurance Company, GSA Insurance Company and Newark Insurance Company.

Gooden-Brown noted that in November, 2003, the Morris County Prosecutor’s Office Insurance Fraud Unit returned a county grand jury indictment charging both Reeves and Baskerville with theft of approximately $120,000 from the Cambridge Integrated Services Company located in Whippany, Morris County.

The county grand jury indictment charged that Reeves, while employed as a claims adjuster at Cambridge, employed a similar scheme to issue fraudulent claims checks to Baskerville.