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.
Workers’ Comp Insurance Sold While License Suspended
An insurance agency, despite a revoked license, continued to sell liability and workers’ compensation insurance to employers for a total of $136,661 worth of premiums. The employer is seeking $190,500 for each of nine counts allegedly filed against the agency for fraudulent misrepresentation, deceptive practice and breach of contract. The insurers provided false certificates of liability and kept the money. The agency’s license was revoked following an investigation by the Illinois Department of Insurance found the insurance agency issued four invalid certificates of insurance. The state accused the group of withholding thousands of dollars in premiums, issuing fake certificates and defaulting on a $334,000 promissory note. Spokesman Louis Pukelis said he did not believe a hearing has been set to review the charges. In another lawsuit, a different employer sued the agency for $111,070 or purchasing invalid policies. SB Bus Driver Convicted Of Workers’ Compensation Fraud Convicted of fraud for filing a workers’ compensation, a bus drive claimed she filed the claim because she experienced headaches and stress brought on by an irate passenger, prosecutors said today. However, footage from a camera mounted in the bus contradicted her claim. At sentencing the woman faces up to nine years in state prison and a fine. Woman Sentenced In Insurance Scams A twenty-four year old woman claimed a car she was driving was hit while she transported medical and dental equipment for her employer. Investigators discovered the defendant was not in the car or anywhere near it at the time of the collision and she was convicted of falsely filing workers’ compensation and automobile insurance claims. (workersxzcompxzkit) The defendant must serve 150 days in county jail or complete a work alternative program. She must pay restitution of over $4,500 to two insurance companies and a $1,000 fine to the state insurance department. In addition she is on felony probation for three years. Resources: Visit LexisNexis for more information and full reports. http://law.lexisnexis.com/practiceareas/Workers-Compensation-Law-Blog/workers-compensation-fraud-/Workers-Comp-Fraud-Blotter-11272009—Recent-Arrests-Charges–Convictions TO DOWNLOAD OR LISTEN TO FREE AUDIO PODCAST click here: http://www.workerscompkit.com/gallagher/mp3 By: Anthony Van Gorp, private investigator with 25 years experience.
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues. ©2009 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
