Insurance scams charged in New Jersey

New Jersey authorities have charged seven people in an alleged workers' compensation scam that they say left many people without insurance.

Those charged are accused of operating companies that linked workers' compensation insurance carriers and clients.

The companies are charged with submitting false information and claims to the insurers and pocketing the benefit payments. The owners of the companies also kept money submitted by clients to pay insurance premiums, the state alleges.

The scam netted about $1.5 million for those who owned the companies or operated as insurance brokers.

Indicted on charges of conspiracy, racketeering and related charges were: Justin Sciarra, 59, of Medford; Paul Brown, 43, of Bellmawr; Michael Magee, 34, of Berlin; James Maconaghy, 41, of Mount Laurel; William Griffith, 53, of Reading, Pa.; Paul Hopkins, 58, and his wife Adrienne, 48, both of Marlton.

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