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 – September 18, 2009

Hearing Postponed for Former Aide to Ohio Attorney General (OH) – A hearing regarding attempted workers' compensation fraud by Anthony Gutierrez, a top aide to former Attorney General Marc Dann, has been postponed until October 15th, when a Bureau of Workers' Compensation attorney had to recuse herself because of a potential conflict of interest. Read more

Former Insurance Agent from San Diego Pleads Guilty to Felony Theft (CA) –Louise May Batchelor of San Diego pled guilty to two felony counts of grand theft on September 4. Batchelor owned and operated Sunny SoCal Insurance Service and Louise Batchelor Insurance Service in San Diego , selling various types of insurance policies, including automobile, property, general liability and workers' compensation to individuals and businesses. Batchelor previously pled guilty to one felony count of Grand Theft on October 9, 2008 for stealing insurance premiums from four business owners and issuing bogus insurance certificates. Batchelor continued to collect premiums from additional victims and failed to place insurance coverage. A new complaint was filed, alleging that Batchelor collected in excess of $20,000 in premiums, including $6,800 she collected while out on bail, from at least four consumers. Read more

Virginia Beach Woman Accused of Filing False Insurance Claim (VA) - Veronica McClendon of Virginia Beach was arrested Sept. 14 after she was accused of filing a false claim with the New York State Insurance Fund and receiving about $36,000. Read more

Long Island Carpentry Contractor Charged with Workers’ Comp Fraud (NY) – Stephen Schiavoni, the operator of a Suffolk County carpentry business, was arrested for defrauding the New York State Insurance Fund by allegedly failing to disclose payroll and nearly $1 million in sales for his business. An investigation carried out by NYSIF’s Division of Confidential Investigations revealed that Schiavoni had not disclosed the actual payroll for his business and had concealed from NYSIF premium auditors over $900,000 in receipts from another contractor who is also a NYSIF policyholder. The audit covered the period from March, 2006 to March, 2007. As a result it is alleged that Schiavoni defrauded NYSIF of $44,000 in workers’ compensation insurance premiums.  He was issued an appearance ticket returnable in Suffolk County Court.  The New York State Insurance Department’s Frauds Bureau and the Workers’ Compensation Board Inspector General assisted in the investigation. Criminal complaints and indictments are accusations only.  Defendants are presumed innocent until proven guilty.  Source: NYSIF

Former Long Beach Insurance Broker Ordered to Pay $120,000 Restitution to Victims (CA) – Former insurance broker Carlos Chavez, 39, of Long Beach, was ordered on August 25 to pay $119,427 restitution to five victims. According to CDI investigators, Chavez, doing business as Capable Insurance Services, collected at least $6,895 from five clients between August 2006 and September 2007, for the purpose of purchasing insurance products (homeowners, commercial general liability and workers' compensation). Chavez placed coverage for two of his clients, but allegedly failed to remit any premium, resulting in the insurance company sending cancellation notices on both policies. Both of these clients paid premium directly to the insurance company to reinstate their policies. Chavez allegedly failed to place and remit premium to any insurance company for the other three clients and purportedly issued bogus certificates of insurance to two of these clients to give the impression that the coverage was legitimate. Read more

Ventura Man Pleads Guilty to Workers’ Comp Fraud (CA) – Armando Landa faces five years in state prison after pleading guilty to one count of workers’ comp fraud. Landa had filed a workers’ comp claim while working at a Ventura restaurant, alleging that he had injured his elbow. Landa collected $30,651 in workers’ compensation payments from May 2007 to August 2008, while he began to work for a restaurant in Oxnard in December 2007. Read more

New Hampshire Contractor Indicted on Wage Law and Payroll Violations (MA) – Stom Companies, Inc. d/b/a Premier Caulking, Inc., formerly of Londonderry, New Hampshire, and the company’s corporate officer, Stephen P. Bissonette, of Salem, New Hampshire, were both charged with 12 counts each of Failure to Pay Prevailing Wages and Failure to Submit True and Accurate Certified Payroll Records. Read more

Discovery Bay Contractor Sentenced to Prison for Tax Evasion (CA) – Bill V. Wilson of Discovery Bay and President of DLM Plastering Company Inc. was sentenced to one year and one day in prison and to pay restitution of $307,204.95. According to the prosecution, Wilson began paying employees from two bank accounts. Payments made from the first account were reported to the IRS, but payments made from the second account were not properly reported in order to avoid paying monies owed to the State Compensation Insurance Fund. He made a total of 16 false statements to the IRS, resulting in a loss to the government of more than $300,000. Read more

112 Unlicensed Contractors Nabbed in Statewide Sting (CA) – The Contractors State License Board nabbed 112 unlicensed contractors in a series of stings in Sacramento, Yolo County, and Los Angeles, Riverside and Monterey Counties. Read more

Monroe Employer Arrested for Workers’ Comp Fraud (LA) – Neal Angrum, owner of Water Works Cleaning Service in Monroe, was charged with insurance certificate forgery. Read more