From the Fraud Blotter A survey of what the media, state agencies, insurance companies, and others report in terms of workers’ comp fraud, listing recent arrests, charges, and convictions. Criminal complaints and indictments are accusations only. Defendants are presumed innocent until proven guilty. 1- Employee Disabled and collecting workers’ comp, but Working Elsewhere A woman accused of accepting disability income while being employed was charged with two counts of theft and a single count of workers’ compensation insurance fraud in Luzerne County Court of Common Pleas. The state’s Attorney General Office alleges the defendant received an income from three employments while receiving disability insurance income according to court records. 2- Employer Fails to Provide Workman’s Comp Coverage – Defrauding the Insurance Company A lawsuit filed in Livingston County Circuit Court seeks $111,000 from a Pontiac businessman for allegedly failing to provide workers’ compensation and employers liability insurance policies paid by a local business. The suit is seeking return of the full amount of money paid for the policies. The Illinois Department of Insurance in September revoked the man’s license and fined him $100,000 for allegedly keeping his clients’ payments and allegedly committing several other frauds. 3-Accountant Files False Tax Returns Ordered to Repay $1.7 Million Work Comp and Tax Fraud in NY An accountant pleaded guilty to mail fraud and submitting a false tax return in connection with the operations of several asbestos abatement companies in a case of workers’ compensation fraud involving more than $1.7 million dollars. The woman faces imprisonment for up to 20 years on mail fraud and three years for aiding in the preparation and presentation of a false and fraudulent tax return. (workersxzcompxzkit) As part of her plea the defendant agreed to a court order to pay NYSIF full restitution of $1,186,585. She also must pay restitution of $345,904 to the Zurich Group and $238,187 to Princeton Insurance Company after pleading guilty in the case. We accept articles about WC cost containment. Contact us at: Info@WorkersCompKit.com. *Non-compensable.
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues.
Reposted with Permission: Visit LexisNexis for more information and full reports.
