Monmouth County Public Adjuster Charged With Attempting to Defraud Insurance Company of More Than $15,000

West Long Branch resident Joseph Shammah, 39, was charged with attempting to defraud insurance company of more than $15,000

TRENTON – Attorney General  Jeffrey S. Chiesa announced that the Office of the Insurance Fraud Prosecutor has  obtained an indictment charging a Monmouth County public adjuster with  insurance fraud and related charges for allegedly submitting fraudulent  insurance claims in an attempt to defraud New Jersey Manufacturers Insurance  Company (NJM) out of more than $15,000.

Joseph Shammah, 39, of West  Long Branch, owner of Northeast Claims Group, LLC, was charged yesterday (April  4) in a Mercer County grand jury indictment with second-degree insurance fraud,  third-degree attempted theft by deception, fourth-degree misconduct by a  corporate official and fourth-degree false swearing.

Shammah was charged as a  result of an undercover “sting” investigation dubbed “Operation Home  Makeover.”  The investigation, which took  place in 2012, was aimed at exposing fraudulent insurance practices employed by  public adjusters in their negotiations with insurance companies throughout New  Jersey.  A public adjuster is an  intermediary between an insured and his or her insurance company who is hired  by an insured after an event of loss causes damage to the insured’s covered  property.

“At a time when thousands of  New Jersey homeowners are still reeling from the effects of Superstorm Sandy,  they need to know that they can depend on the people they hire to negotiate on  their behalf and that those hired professionals will conduct themselves within  the confines of the law,” Attorney General Chiesa said.  “We believe that this defendant violated the  law in an attempt to line his own pocket.”

“When corrupt public  adjusters defraud insurance companies, this deception results in increased  insurance rates for homeowners in New Jersey,” Acting Insurance Fraud  Prosecutor Ronald Chillemi said.  “Investigating  and prosecuting dishonest public adjusters is a priority for the Office of the  Insurance Fraud Prosecutor and my office will continue to use proactive  techniques such as stings to crack down on this type of fraud.  When we successfully root out this type of  behavior, we help alleviate some of the burdens of rising insurance costs that  homeowners face.”

As part of “Operation Home  Makeover,” the Office of the Insurance Fraud Prosecutor utilized undercover  personnel.  The indictment alleges that  between April 1 and Aug. 3, 2012, Shammah came to the house and made false  statements regarding the damage in order to obtain approximately $15,452 from  NJM to which he was not entitled.  It is  further alleged that Shammah swore false information about the cause of the  damage under oath.

It is alleged that the  undercover detectives recorded statements from Shammah that demonstrate that he  knew that the claims that he submitted were false and that he was not entitled  to recover insurance proceeds for the type of damage that actually exists at  the property.  Shammah  allegedly tried to push through these claims in order to fraudulently recover  insurance money to which he was not legally entitled.

The indictment is merely an accusation  and the defendant is presumed innocent until proven guilty.  Second-degree crimes carry a maximum sentence  of 10 years in state prison and a criminal fine of up to $150,000 while  third-degree crimes carry a maximum sentence of five years in state prison and  a criminal fine of up to $15,000.   Fourth-degree crimes carry a maximum sentence of 18 months in state  prison and a criminal fine of $10,000.

Deputy Attorneys General Cheryl  A. Maccaroni and T.J. Harker, Lt. Russell Rizzo, and Detectives Christine  Sullivan and Michael Rasar were assigned to the case.  Sgt. Jarek Pyrzanowski and Detective Natalie  Brotherston also assisted in the investigation.   Acting Insurance Fraud Prosecutor Chillemi thanked NJM for referring the  matter to the Office of the Insurance Fraud Prosecutor and for working with the  OIFP throughout the course of this investigation.  Acting Insurance Fraud Prosecutor Chillemi  also thanked Acting Regional Superintendent Joseph P. Winnicki, Central  Regional Office, with the New Jersey Department of Environmental Protection,  Division of Parks and Forestry and the staff of Washington Crossing State Park.