A constitutional challenge to the New Jersey Office of the Insurance Fraud Prosecutor’s practice of “outsourcing” investigations to insurance companies has been tossed out by the U.S. Court of Appeals for the Third Circuit—but the court left the door open for the issue to be revisited in the future.
The plaintiff, Harshad Patel, is also a defendant in three civil suits brought by insurance companies under the Insurance Fraud Prevention Act. In his federal suit, he claimed he was deprived of his rights under the Fifth and Sixth amendments because the attorney general and the Insurance Fraud Prosecutor improperly outsourced their prosecutorial functions to special investigative units at Allstate, State Farm and Liberty Mutual—the plaintiffs in the three state court insurance fraud cases against Patel.
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