THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, January 27, 1995 TAG: 9501270647
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: STAFF REPORT
DATELINE: PHILADELPHIA LENGTH: Short : 34 lines
Four Hampton Roads men were indicted Thursday for allegedly running two fraudulent health insurance schemes that bilked subscribers in 26 states of more than $1 million.
The 15-count federal indictment - including one count of racketeering - alleged that the men marketed and administered the two fraudulent employee health insurance schemes, the Atlantic Plan and the American Plan, that received more than $12 million in subscriber premiums from November 1990 to this year.
The indictment named Edward Zinner, 35, of Virginia Beach; Jeffrey C. Neal, 45, formerly of Virginia Beach but now living in Maryland; Mark W. Waldron, 38, of Portsmouth; and William E. Moulton Jr., 59, of Virginia Beach.
The four allegedly failed to pay health care claims, leaving beneficiaries with unpaid medical bills. They also allegedly stole funds held in trust to pay benefits and used them for personal debts, entertainment expenses, no-interest loans and personal lines of credit, the indictment said.
Zinner, the founder of a rock band named Southern Legends, allegedly hired band members as full-time insurance employees, then diverted their services to help construct his restaurant, The New England Lobster and Clam House on Shore Drive in Virginia Beach.
KEYWORDS: INSURANCE FRAUD ARREST by CNB