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June 8, 2014

Phantoms cost GHP $130,000, agent says

LEWISBURG — Geisinger Health Plan paid more than $130,000 in medical and pharmacy claims for eight members of the Bolus family, including dependents, who were not eligible for group insurance, according to a 50-page indictment issued Friday that levies charges of insurance fraud.

The state attorney general’s office completed a nearly two-year investigation of the Bolus family, and six family businesses, that allegedly shows the health plan members were not full-time employees and in some cases, were rarely seen at Minuteman Environmental Services, Minuteman Spill Response, Minuteman Towing or Bolus Truck Parts and Towing Services.

“Ghost” employees do not qualify under the Geisinger Health Plan, said Jennifer Harrison, an agent with the attorney general’s office, and Neil Paisley, an underwriting manager for Geisinger.

A grand jury indictment claims Brian Bolus, of Lewisburg, president of the Minuteman companies, conspired with his mother, father, sister, brother and his father’s fiancee to commit insurance fraud.

Brian Bolus or his brother, Robert Bolus Jr., signed two contracts with Geisinger Health Plan, the first of which in April 2004 stated that employees would not be eligible for benefits unless they worked 33 hours a week. The second contract, in 2007, stated that to be lawfully covered, employees must work 40 hours a week and that part-time workers were ineligible.

Geisinger Health Plan paid $83,000 in medical and pharmacy claims for Debra Bolus, 50, of Mountain Top. The sister of Brian Bolus submitted claims to the insurance plan as an employee of Minuteman Spill Response, then as a worker at Bolus Truck Parts, according to the indictment.

Geisinger Health Plan paid $14,655.30 in medical claims for Robert Bolus Jr., 48, of Bloomsburg; and $7,087 to Bolus’ mother, Julie Bolus, 71, of Mountain Top.

A secretary and office manager, an accounts receivable clerk, a payroll clerk and the human resources director for Minuteman Spill Response testified before the grand jury that Julie Bolus was paid $300 a week, but never worked in the office or did any work for any Minuteman company.

Julie Bolus in June 2004 completed an application for benefits claiming she was an employee of Minuteman Towing Inc., in Mifflinville, and that she was a 40-hour per week employee.

At the time of the application, Julie Bolus’ address was listed as Clarks Summit, which is about 60 miles from Minuteman Towing Inc.

Julie Bolus in 2007 completed another application for health care benefits in which she claimed to be an employee of Minuteman Towing and Repairs since 2000, court records said.

Records show Julie Bolus had opened a bank account in 2007, and payroll documents from Minuteman Spill Response indicate that because she was being paid $300 per week and did not receive a raise over a five-year period, she was a ghost employee, prosecutors say.

Bob Bolus Jr. was writing checks to Minuteman for pay for health coverage for him and his relatives, yet he was not an employee of Minuteman. Authorities claim this financial practice constitutes money laundering.

Siblings Brian Bolus, Bob Bolus Jr., Debra Bolus; their parents, Robert Bolus Sr. and Julie Bolus; and Robert Sr.’s fiancee, Sophie Gregory, face charges in the alleged insurance scheme, according to the indictment.

 

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