Lakewood recycler, Neptune insuror face comp fraud charges

Owners and staffers of a shore-based recycling firm and an insurance agency risk five to 10 years in prison apiece if convicted of the most serious charges involving alleged workmen's compensation fraud.

Investigators believe it cost the New Jersey Manufacturer's Insurance Company $598,282 between January 2011 and June 2014.

Albert Boufarah, 49, ot Toms River, owner of Supreme Asset Management Recovery (SAMR) of Lakewood; Donna DeMartino, 39, of Brick Township, listed as an official of SAMR; Joseph Amato II, 72, of Waretown, owner of the Amato Agency, LLC in Neptune; and Joseph Amato III, 49, of Howell, and Jennifer Phillips, 42, of Old Bridge, listed as agents of the insurance firm, allegedly classified SAMR warehouse workers as office staffers to lower comp premiums, according to the office of acting New Jersey Attorney General John J. Hoffman.

The indictment charges them with second-degree counts of conspriacy, fraud, theft by deception and misconduct by a corporate official. Boufarah and DeMartino are also charged with fourth-degree counts of falsifying records. The Amatos are additionally charged with fourth-degree swearing.

Second-degree counts are punishable by five to 10 years in prison, plus fines up to $150,000, on conviction. Fourth-degree charges carry possible prison terms of 18 months and fines up to $10,000 on conviction.

Investigators contend that nearly all of SAMR's employees, estimated to be 50 to 72 in number, were listed as office workers, when most were assigned higher-risk tasks such as dismantling and refurbishing televisions, computers and other electronic devices.

Insurance fraud can be reported to the Attorney General's toll-free hotline, 1-877-55-FRAUD, or at the state Insurance Fraud Prosecutor's web page.