Ridgewood man admits role in insurance fraud scheme

By Myles Ma/NJ.com
on October 24, 2012 at 2:40 PM, updated October 24, 2012 at 2:43 PM

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Craig Klein, 46, of Ridgewood Passaic County Prosecutor’s Office

PATERSON — A Ridgewood man admitted Wednesday to taking part in an insurance fraud scheme, Passaic County Prosecutor Camelia M. Valdes said in a statement.

Craig Klein, 46, pleaded guilty to theft by deception.

Klein made between $500 and $75,000 from fraudulent insurance claims, Valdes said. Klein, a chiropracter whose license was suspended, was a part-owner of Hamilton Rehabilitation Center in Paterson.

The center paid “runners” to steer accident victims to Hamilton, Valdes said. In turn, the center sent fraudulent personal injury protection claims to more than 30 automobile insurance companies between December 2010 and February 2011.

Klein and the Hamilton Rehabilitation Center were the subject of an ongoing year-long investigation by the Passaic County Prosecutor’s Office. Three Passaic County residents were indicted for working as runners for the center, PatersonPress.com reported.

Klein faces between three and five years in prison.

The New Jersey Board of Chiropractic Examiners suspended Klein’s license in 2006. The suspension came after his arrest in 2002 for paying for referrals.