Metuchen Woman Used Dead Caregiver’s Info To Collect Long-Term Care Payments: AG

METUCHEN, NJ – A 72-year-old Metuchen woman was indicted on charges of insurance fraud and money laundering after she used her dead caregiver’s information to continue receiving benefits, the Attorney General’s office said.

Leoncia Hutchinson, 72, was indicted on one count of insurance fraud (2nd degree), one count of theft by deception (3rd degree), one count of financial facilitation/money laundering (3rd degree), one count of forgery (3rd degree), and 12 counts of forgery (4th degree).

Her arraignment is scheduled for Nov. 6.

The indictment is a result of an investigation by the Office of the Insurance Fraud Prosecutor (OIFP) after a referral from Continental Casualty Company, a CNA-affiliated underwriting company (CNA).

According to investigation, between October 2018 and April 2019, Hutchinson committed insurance fraud by submitting false, fictitious, or misleading statements to CNA, to create the false impression that services were provided to her by an independent caregiver, who was dead at the time.

Authorities said Hutchinson submitted forged timesheets to CNA to receive long-term care payments for the dead caregiver’s services.

The indictment also alleged that CNA made payments to Hutchinson, and she wrote checks to the deceased caregiver, deposited the funds into an account, then moved the funds back into an account in her name, knowing the transactions were designed to conceal or disguise the nature, location, source, ownership, or control of the money.

“As alleged in the indictment, the passing of this caregiver was viewed as a moneymaking opportunity. But efforts to capitalize on his death, using fraudulent documentation, failed,” Attorney General Matthew Platkin said.

“We continue to do our part to investigate and prosecute insurance fraud schemes, and encourage individuals and businesses who learn of fraudulent activity to come forward and report it.”

“This defendant allegedly tried to cheat the system by using a bogus paper trail and writing out checks to someone who was no longer living,” Interim Insurance Fraud Prosecutor Al Garcia said. “Our office is equipped to uncover theft schemes, and attempted cover-ups will not stop criminal activity from being brought to light.”

If convicted, Hutchinson faces five to 10 years in New Jersey State Prison and a fine of up to $150,000. Third-degree charges carry a sentence of three to five years in New Jersey State Prison and a fine of up to $15,000. Fourth-degree charges carry a sentence of up to eighteen months in New Jersey State Prison and a fine of up to $10,000.