A workers’ compensation fraud scheme that spanned two states and netted the perpetrators $1.5 million has been busted.

The massive fraud triggered two separate indictments by the New Jersey Attorney General’s office. The accusations include lying on insurance applications, failing to remit the collected premiums to the insurance carriers, racketeering, and money laundering. Named in the January indictment are New Jersey residents Paul Brown, 43; Michael Magee, 34; James Maconaghy, 41; Justin Sciarra, 59; and William Griffith, 53 of Reading, Pa. Brown, Maconaghy, and Griffith are all currently licensed insurance brokers.

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