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 – July 30, 2009
Asbestos Contractor Sentenced for Failure to Pay $1.6 Million in Workers' Comp Premiums (NY) – The owner of an asbestos-removal company in
Queens was sentenced to nearly four years in prison for failure to pay workers' comp premiums after underreporting the number of employees at his company. Once he serves his sentence, he will be deported because he's an illegal immigrant from South Korea. Read more
Doctor Caught on Tape Charged With Fraud (CA) – An Aliso Viejo doctor, who claimed a fall at work left her in chronic pain and unable to walk, stand, or sit for more than five minutes at a time, was videotaped carrying jugs of water, walking effortlessly, climbing a ladder, and balancing herself on one foot. She was charged with 10 felony counts of fraud. Read more
Labor Dept. Says Staffing Agency Operator Misclassified Workers and Shortchanged Workers (NY) – The State Labor Department says a staffing agency operator made illegal deductions in excess of $95,000 due to about 100 employees, much of which had to with misclassifying the workers as independent contractors. The Labor Dept. says illegal deductions were made from the employees' wages for workers' comp and liability insurance, transportation to work sites, fines for leaving early from work sites, and payroll advance fees. Read more
Delray Beach Roofer Convicted for Failure to Pay $400,000 in Workers' Comp Premiums (FL) – A Delray Beach roofer, who used fake companies to avoid paying $400,000 in workers' compensation premiums, was sentenced to five years probation and ordered to pay restitution. Read more
Ulster County Man Sentenced for Workers' Comp Fraud (NY) – An Ulster County man who admitted that he illegally accepted workers' compensation benefits was ordered Thursday to make $77,800 in restitution and serve a 30-day jail sentence. Read more
Winchester Company Pleads Guilty for Violating Wage and Workers' Comp Laws (MA) - A Winchester construction and demolition company was arraigned and pled guilty in connection with failing to properly pay their employees, failing to pay the proper premium for its workers’ compensation insurance policy, and failing to provide true and accurate payroll records. P & R Partners Construction Inc. pled guilty to charges of Workers’ Compensation Fraud, Failure to Pay Overtime, and Payroll Records violations. In addition, the company’s owners and officers admitted to sufficient facts for Failing to Pay Overtime and Failing to Provide True and Accurate Payroll Records. They were ordered to pay over $54,000 in restitution to 51 former employees, $50,000 in restitution to the insurance company, and a $30,000 fine to the Commonwealth, and were placed on probation for a period of one year. Read more
Solano County Sheriff's Correctional Officer Arrested for Workers' Comp Fraud (CA) – A Solano County Sheriff's Correctional Officer was booked on eight counts of insurance fraud. He was accused of claiming an injury incurred while struggling with an inmate, but an investigation determined that his story was false. Read more