Home | Previous Stories | Videos | Books | Store | Links | Contact Us   Join Our Mailing List

The New York Times, December 18, 1998

Copyright 1998 The New York Times Company  
The New York Times

December 18, 1998, Friday, Late Edition - Final

SECTION: Section B; Page 8; Column 5; Metropolitan Desk

LENGTH: 244 words

HEADLINE: Metro Business;
Judge Freezes Assets Of Head of H.M.O.

A New Jersey State judge yesterday froze about $5 million in assets of a doctor who heads a troubled health maintenance organization and ordered him to post a bond of $840,000 while regulators review the company's financial records, officials said.

Judge Anthony J. Parrillo of Superior Court also ordered the doctor, Magdy Elamir, who is president of American Preferred Provider Plan, to give a full accounting of his personal assets and liabilities to the State Department of Banking and Insurance within 20 days, said Emerald Kuepper, a deputy State Attorney General.

Officials at the state agency became concerned about the company's financial problems after reviewing its third-quarter performance last year. The state found a number of transactions in which Dr. Elamir, a neurologist who lives in Saddle River, directed millions of dollars from the company's accounts to subsidiaries that he also controlled, Ms. Kuepper said. The state took control of American Preferred, which is based in Paterson, earlier this month.

The state is continuing to investigate the matter, Ms. Kuepper said, and Dr. Elamir has not been charged with any wrongdoing. He is due back before Judge Parrillo on Feb. 1.

The customers of American Preferred, most of whom are poor, still receive care, Ms. Kuepper said.

Dr. Elamir's lawyer, Michael Chertoff, said that all transactions were approved by state agencies and that his client has done nothing improper.