Each week we'll be surveying what the media, state agencies, insurance companies, and others report in terms of workers' comp fraud. Just like a police blotter, our workers' comp fraud blotter lists recent arrests, charges, and convictions.

Workers' Comp Fraud Blotter – October 30, 2009

Two Men Plead Guilty in $6.7 Million Workers’ Comp Fraud Case (CA) – Sanjiv Mahendra Shah, of Placentia, and Abu M. Hossain, of Chino Hills, have pled guilty to 13 counts of fraud and one count of conspiracy in a workers' compensation insurance fraud case that began in 2005 and resulted in their arrests Oct. 15, when they surrendered at the Orange County Superior Court Central Justice Center. From 2005 to 2008 it was alleged that Shah, with Hossain's help, underreported employee payroll by $6.71 million to lower his workers' compensation insurance premiums to the State Compensation Insurance Fund and later the Fireman's Fund. Read more

Pontiac Insurance Agency Sued for Insurance Fraud (IL) – A lawsuit alleges that Dave Bertsche and his insurance agency, Bertsche and Berry Inc., cashed a $111,070 check from Hendrix Town and Country, Inc. but failed to secure a Workers Compensation and Employers Liability Insurance Policy for their client. Read more

Civil Judgment Reached in Workers’ Comp Fraud Case (CA) – The Contra Costa County District Attorney’s Office announced a $166,561 civil judgment against Miguel Navarro, of Navarro’s Trucking, who was accused of failing to provide workers' compensation insurance to employees while under contract with the U.S. Postal Service. Read more

Sacramento Man Convicted of Insurance Fraud (CA) – Jeff Nofts pleaded no contest to felony insurance fraud after being accused of receiving outside income while collecting workers’ compensation benefits. Read more

Park Avenue Accountant Guilty in Million Dollar Comp Fraud (NY) – Sun “Sunny” H. Park, who operated as an accountant from her home in New York City, 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. Read more

NYSIF Announces String of Fraud Arrests with $600K Price Tag (NY) – NYSIF Chief Deputy Executive Director Francine James recently announced a series of investigations leading to seven arrests in a continuing crackdown on fraud by the state’s largest workers’ compensation insurance carrier. The arrests, in cases totaling an estimated fraud value of more than $600,000, included a former corrections officer allegedly working as a bouncer at an upstate night club, a Bronx beverage distributor, a Department of Motor Vehicles estimator, and a Nassau County crane erection company allegedly operating without workers’ compensation insurance. Read more

Florida Real Estate Agent Charged With Defrauding NYSIF (NY) – Ben Keskin, a Florida real estate agent and resident of Florida, was arrested for committing insurance fraud against NYSIF. In 2008 and 2009, Mr. Keskin was found to be selling real estate in Celebration, Florida and from 2007 to 2009 he submitted several forms to NYSIF indicating that he was not employed.  Keskin has been a licensed real estate agent in Florida since 2006. Mr. Keskin sustained a work-related injury in January, 1995 while employed at an aircraft parts factory in Deer Park, New Yor .  He was designated as permanently partially disabled and was receiving $400 weekly in workers’ compensation benefits. Read more

Western New York Man Indicted For Workers’ Comp Fraud (NY) – An investigation initiated by the New York State Insurance Fund’s Division of Confidential Investigations revealed that Robert Stanton of the Livingston County community of Avon signed statements attesting to NYSIF that he had not returned to any form of work while he was employed buying and selling cars for auto dealerships. Read more

Munster Cop Charged With Workers’ Comp Fraud (IN) – Mark Henry Westerfield, a Munster police sergeant, has been charged with insurance fraud and theft for allegedly claiming he injured his ankle on the job when video surveillance indicated otherwise. Read more

Marysville Contractor Pleads Guilty to Theft and Workers’ Comp Fraud (WA) – Mark D. Standley, the owner of Master’s Touch Drywall of Marysville, pleaded guilty to felony theft of sales tax and workers’ compensation fraud and agreed to pay $2.1 million in restitution. Standley underreported sales tax he collected on his jobs and failed to pay workers’ compensation premiums.  Read more

Hazleton Woman Accused of Workers’ Comp Insurance Fraud (PA) – Patty Lee Huemme-Gruenemeier of Hazleton, who has been accused of accepting disability income while employed, has waived her right to a preliminary hearing. Read more