Local News

Cary gym owner charged with insurance fraud

Posted January 25, 2010 3:55 p.m. EST

— 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.