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 28, 2009

Complex Class Action Suit Against AIG for Fraud and Civil Racketeering May Require Actuarial Expert to Oversee It (IL) - Attorneys will be in federal court on Monday to discuss the management of a prospective class-action suit of more than 500 insurers against American International Group for civil racketeering and fraud. The insurers claim that, for several decades, AIG filed fraudulent reports to avoid the financial impact of taking on its proportionate share of the National Workers’ Compensation Reinsurance Pool. Read more

El Paso Man Sentenced to Prison for Collecting Over $50,000 in Workers’ Comp for False Claim (TX) - Jose Barraza was sentenced to 10 months in prison for collecting $54,851 in workers’ compensation for an alleged arm injury, when surveillance videos showed him attending a football game, painting his house, and throwing tires in a dumpster with full use of his arm. Read more

Former Aide to Attorney General Dann Pleads Guilty to Attempted Workers’ Comp Fraud Among Other Things (OH) – Anthony Gutierrez, a top aide to former Ohio Attorney General Marc Dann, pled guilty to theft in office, unauthorized use of state property, and a reduced charge of attempted workers’ compensation fraud, among other charges, this after he was fired for violating sexual harassment policies that erupted in a scandal, forcing Dann’s resignation. Read more

Bankruptcy Fraud Case Involved Concealment of Assets From Workers’ Comp Settlement (WV) -  A federal crackdown on bankruptcy fraud netted several convictions, including that of Victoria Ann Caudill, who pled guilty to concealing a $60,000 workers’ compensation settlement from the bankruptcy trustee and her creditors. Read more

Kentucky Man Caught on Video Performing Physical Labor After Claiming Worsening Back Injury (KY) – Ronald L. Amis pled guilty to Perjury First Degree in connection to his workers’ compensation injury. After receiving a lump sum settlement of $36,473.58 for a 15% permanent partial disability, he claimed he had a worsening condition and was now totally restricted from gainful employment. However, video footage showed him performing physical tasks. Read more

Kentucky Man Pleads Guilty to Workers’ Comp Insurance Coverage Fraud (KY) – Charles Thomas Cox pled guilty to one felony count of fraudulent insurance acts for faxing a document that purported he had workers’ compensation insurance coverage at Cox Machinery when, in fact, no such insurance coverage was in effect. Read more

Clarks Summit Man Sentenced for Fraud Against Lackawanna County's Workers' Comp Fund (PA) - Marc Boriosi was sentenced to 10 months imprisonment and three years of supervised release, and ordered to pay in excess of $500,000 in restitution for fraud, money laundering, and tax charges in connection with fraud against the lackawanna County Workers'  Compensation Fund. Read more