CaryCitizen photo by Hal Goodtree

Cary, NC – According to The Asbury Park Press, the dispute between Impact Athletics owner Frank D’Alonzo and Blue Cross may be near a settlement. That’s good news for former employees of the defunct gym.

Based on our earlier reporting, it appears that Mr. D’Alonzo stopped making insurance payments for his employees in July of 2009 but continued to collect payments throughout the autumn. Blue Cross canceled the policy in November and made that action retroactive back to July.

That left employees who had incurred health care costs uninsured for an estimated $30,000.

Mr. D’Alonzo was arrested on 14 counts of fraud in New Jersey in January.

The agreement reinstates coverage back to July 31 through December 31. Blue Cross is reported to agree to drop its claim against Mr. D’Alonzo. In return, Mr. D’Alonzo is said to have agreed to drop his action against the insurer for canceling the policy. The agreement was only missing the judges signature, according to APP.