DOI News

For Immediate Release: Contacts:
January 25, 2010 Kristin Milam
Johanna Royo
Cary Gym Owner Arrested on Insurance Fraud Charges
Nearly $30,000 in medical expense incurred by employees
RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Frank P. D'Alonzo, 52, 40 Persing Blvd., Lavallette, N.J., for allegedly terminating, without notice, group health insurance for the employees of Impact Athletics, 280 Towerview Ct., Cary. The investigation further alleges that Blue Cross Blue Shield of North Carolina premium payments were deducted from employees' paychecks even after their insurance was terminated and some employees incurred medical expenses totaling nearly $30,000. Insurance for the 14 employees was terminated for non-payment by BCBSNC on July 31, 2009.
Under N.C. law, an employer must give employees written notice 45 days in advance of the termination of group health insurance. D'Alonzo was arrested by the Ocean County Sheriff's Office in New Jersey and charged with 14 counts of failure to deliver a 45-day written notice to employees of the termination of group health insurance coverage. He was placed under a $10,000 secured bond. Impact Athletics was closed on Nov. 13, 2009.
The Department of Insurance employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud. So far in 2009, these criminal investigators have seen more than 413 cases successfully closed with more than $10.5 million in restitution and recoveries, 89 criminal convictions and 175 arrests.
An estimated 10 cents of every dollar paid in premiums goes toward the payment of fraudulent claims. To report suspected fraud, contact the Department of Insurance Investigations Division at (919) 807-6840. Callers may remain anonymous. Information is also available at the NC-DOI Web site.
-- NCDOI --