A Raleigh man has been arrested and charged with canceling his employees health insurance without proper notice.
Paul Joseph Stafford, 43, of 6909 Spring Dr., has been charged with one count of willful termination of a group health plan.
Investigators with the N.C. Department of Insurance allege that Stafford canceled his employees’ Blue Cross and Blue Shield of North Carolina and UnitedHealthcare group health insurance policies without providing the required 45-day notice.
Stafford was the owner of Ideas Architecture, Inc. and New Ideas, Inc. Both companies have gone out of business.
At least two employees accrued health care costs totaling more than $2,000 from the time their coverage was canceled until they received cancellation letters from BCBSNC in June, according to the Department of Insurance.
The Department of Insurance employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud.
This year, investigators have made more than 50 arrests and 30 criminal convictions.
Earlier this year the owner of a closed Cary gym was also charged with insurance fraud.
Frank P. D'Alonzo, 52, of 40 Persing Blvd. in Lavallette, N.J., was arrested for allegedly terminating group health insurance without prior notice for the employees of Impact Athletics, a Cary gym that shut its doors late last year.
To report suspected fraud, contact the Department of Insurance Criminal Investigations Division at 919-807-6840. Callers may remain anonymous. Information is also available at www.ncdoi.com.