Albert Boufarah New Jersey Office of the Attorney General
Electronics recycling company owner admits $600K in insurance fraud
Jeff Goldman | NJ Advance Media for NJ.com
updated October 12, 2016 at 10:30 AM
OCEAN COUNTY, NJ — The owner of a Lakewood recycling company admitted he bilked his insurance carrier out of about $600,000 by lying about what kind of work employees performed.
Prosecutors will recommend Albert Boufarah, 49, of Toms River, be sentenced to three years in prison and be fined no more than $200,000, the state Attorney General's office said in a news release.
The company will also have to pay $598,282 in restitution to New Jersey Manufacturer's Insurance Company.
Boufarah claimed most of Supreme Asset Management Recovery employees were office workers performing clerical tasks so he could get lower rates for workers compensation coverage, according to prosecutors. In reality they were performing riskier jobs such disassembling and refurbishing televisions, computers, and other electronic devices
Boufarah pleaded guilty to second-degree conspiracy and insurance fraud. He'll be sentenced March 3, 2017.
An official at SAMR, Donna DeMartino of Brick previously pleaded guilty to third-degree insurance fraud. The 39-year-old is expected to be sentenced to probation when she is sentenced Nov. 10.
The owner and two employees of The Amato Agency were indicted earlier this year for their role in the scheme:
- Joseph Amato II, 72, of Waretown, the company's owner
- Joseph Amato III, 49, of Howell,
- Jennifer Phillips, 42, of Old Bridge
They are charged with conspiracy, insurance fraud, and theft.