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 – August 15, 2009

Dunmore Man Sentenced for Stealing $650,000 From Workers’ Comp Fund (PA) - Charles A. Costanzo, who stole nearly $650,000 from Lackawanna County's workers' compensation fund, was sentenced Thursday to serve five years and 10 months in federal prison and pay restitution of more than $500,000. Read more

Former Senate Employee Pleads Guilty for Illegal Receipt of $259,000 in Federal Employees Compensation Benefits (DC) – Theodore Holmes has pled guilty to mail fraud for the illegal receipt of FECA benefits while owning and operating several car wash businesses. Read more

Insurance Agent Charged for Noncompliance of Workers’ Comp Coverage (PA) – William R. McCandless, a Connellsville insurance agent, has been charged by the state attorney general with failing to provide workers' compensation insurance for his employees. Read more

Capper Sentenced to Eight Years in Prison for $154 Million Medical Insurance Fraud Scheme (CA) – Olga Lilia Toscano, was sentenced to eight years in prison in what appears to be the largest medical fraud prosecution in the nation for recruiting over 245 healthy patients to undergo unnecessary and dangerous surgeries to fraudulently bill medical insurance companies in the amount of $154 million. Read more

Three Family Members Charged With Insurance Fraud and Embezzlement (CA) – A former claims adjuster, Melody Ann Mosqueda, of Valley Springs, her former husband, Anthony Charles Mosqueda, of Stockton, and their daughter, Rachel Lee Anthony-Mosqueda, were arrested and charged with insurance fraud and embezzlement. According to Calif. Dept. of Insurance detectives, Melody Ann Mosqueda perpetrated an embezzlement scheme while working for Zurich and Fireman's' Fund insurance companies as an insurance claims adjuster from 2003 to 2007 by allegedly inputting false information into legitimate insurance claims, then issuing payment for fictitious settlements and/or services. It is further alleged that these checks were issued to and cashed by Mosqueda and her family members. The Mosqueda family also apparently created several bogus companies to which Melody Ann would then issue insurance payments and subsequently cash those checks. Read more

Oneida County Cable Technician Arrested for Illegally Collecting $18,600 in Workers’ Comp Benefits (NY) – Amir Tricic of Utica man was arrested and charged with fraudulently collecting $18,600 in workers’ comp benefits while working as a handyman. Read more

Home Contracting Sting Nabs Four in Livermore (CA) – State investigators posing as Livermore homeowners nabbed four contractors suspected of crimes ranging from illegal advertising to license fraud, and in one case, lack of workers’ comp coverage. Read more

Attica Prison Guard Charged With Workers’ Comp Fraud (NY) – David W. Fetzer, an Attica State Prison Guard, has been indicted on charges of filing false documents to obtain workers’ cop benefits. Read more