TRENTON AND TOMS RIVER — New Jersey Department of Banking and Insurance Commissioner Richard J. Badolato and Allstate New Jersey Insurance Company (Allstate) and its subsidiary Encompass Insurance (Encompass) in a lawsuit filed today accuse Anhuar Bandy of Colts Neck of masterminding a sophisticated, widespread personal injury mill involving 78 defendants, including runners who recruited individuals involved in motor vehicle accidents and then referred those individuals to lawyers and doctors in violation of the New Jersey Insurance Fraud Prevention Act (IFPA).
The complaint alleges that Bandy and his brother, Karim Bandy, unlawfully owned and/or controlled chiropractic clinics in Camden, Hudson, Mercer, Middlesex, Morris, Ocean and Union Counties. Bandy, his brother Karim, and ten others were arrested by the New Jersey Office of the Insurance Fraud Prosecutor (OIFP) in May 2014 after being charged in a 45-count indictment for participating in an auto accident insurance fraud scheme that began in 2009.
On July 7, 2015, Anhuar and Karim Bandy both pleaded guilty to insurance fraud in the second degree in the criminal prosecution. Anhuar Bandy was also previously convicted in Union County in 2004 on charges of racketeering, conspiracy, health care claims fraud and theft. He received parole and left prison in 2008.
The new IFPA lawsuit also names Plainfield personal injury lawyer David Walker, Esq., of Rockaway and his paralegal Alexandra Gallegos of Piscataway. Both Walker and Gallegos were among those arrested in 2014. The suit alleges that Walker and Gallegos paid kickbacks to Bandy in exchange for referring clients to their firm.
Today’s lawsuit follows an investigation by the Department’s Bureau of Fraud Deterrence (the Bureau), Allstate and OIFP. On behalf of New Jersey consumers, the Department is seeking a substantial, yet undetermined IFPA-mandated fine amount and Allstate is seeking reimbursement for personal injury protection benefits that Allstate paid on behalf of its customers. In 2015, the Bureau fined fraudsters more than $4.2 million in fines, surcharges and restitutions for various IFPA violations.
“This lawsuit is the latest in a series of actions taken by the Department, Allstate and other insurers to protect New Jersey customers who insure 5.5 million private passenger autos and are charged nearly $7 billion in written premiums,” said Commissioner Badolato. “These and similar alleged fraudulent activities increase the cost of insurance to consumers.”
It is important to note that a lawsuit simply sets forth allegations of wrongdoing. Ultimately, the evidence will be presented in court where a determination will be made in the matter.
Report Fraud
New Jersey residents should report insurance fraud by calling the Bureau at 609-292-7272 x 51088, or by going to and completing a complaint form online. (Under reason of complaint, write “Fraud” in “Other Description” box.)
For More Information
Consumers with questions or concerns about insurance fraud should contact the Department of Banking and Insurance’s Bureau of Fraud Deterrence at 609-292-7272 x 51088 or online at . |
