The New York Times, December
Copyright 1998 The New York Times
The New York Times
December 18, 1998, Friday, Late Edition - Final
SECTION: Section B;
Page 8; Column 5; Metropolitan Desk
LENGTH: 244 words
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
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
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.