Local News

Cary gym owner charged with insurance fraud

Posted January 25, 2010

Map Marker  Find News Near Me

— State Department of Insurance agents on Monday arrested the owner of a Cary gym on insurance fraud charges, officials said.

Frank P. D’Alonzo, 52, of Lavallette, N.J., was charged with 14 counts of failure to deliver a 45-day written notice to employees of the termination of group health insurance coverage.

Under state law, an employer must give employees written notice 45 days in advance of the termination of group health insurance. Investigators said D'Alonzo dropped the health insurance coverage for the employees of Impact Athletics, at 280 Towerview Court in Cary, last July, but he continued to deduct premiums from employees’ paychecks.

Some employees incurred medical expenses totaling nearly $30,000, thinking they had insurance coverage, investigators said.

Impact Athletics closed in November.

6 Comments

This story is closed for comments.

Oldest First
View all
  • kiediss Jan 26, 2010

    I hope he will also be taken to court and charged by the atty general for the ripoff of the members who paid for a year but got 10 and a half mos instead.

  • RWS Jan 25, 2010

    Given history, why would anyone work for a gym... as well as give money to one.

  • rtpduder Jan 25, 2010

    How do people honestly think they can get away with fraud like this? The plan is stupid and will never work. Out of those 30 employees, someone is going to use their insurance during those four to five months. When this happens and their coverage gets denied, the employer gets caught. There's no way around it.

  • wildcat Jan 25, 2010

    These people should certainly get some 20 years in prison. More than likely the people probable will not be able to get there money back.

  • stlrfnatc73 Jan 25, 2010

    I believe the gym owner should be stuck with those medical bills. Those employees thought in good faith that they had insurance and the deception by the gym owner is not at all thier fault. The gym owner should be held accountable for all bills.

  • HappyGirl08 Jan 25, 2010

    Good grief. That is terrible. I'm sure all of those people are going to be stuck w/those bills too.