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 25, 2009
Chief Judge Issues Order Dismissing Premier Medical Management's $70-Million Medical Liens (CA) – As part of an agreement to resolve criminal charges, Premier Medical Management Systems, Inc. of
Los Angeles has requested California Workers’ Compensation Appeals Board Chief Judge Mark Kahn to issue a consent order dismissing an estimated $70 million of medical bills Premier previously submitted for payment to workers’ compensation insurance carriers. Premier had submitted several thousand allegedly fraudulent bills to the workers’ compensation insurance companies for services supposedly provided by more than 130 affiliated physicians and clinics. Read more
Grand Jury Indicts Temporary Work Firm (MA) – Tam Vuong, the owner of Labor Solutions Inc. of
Worcester, a local temporary employment agency, has been indicted on 66 counts of violating the state’s wage and hour laws and committing insurance and tax fraud, including employee misclassification. Read more
Six Double Dippers Charged With Workers’ Comp Fraud (TX) –Travis County grand juries indicted six claimants, in separate cases, on workers’ compensation fraud-related charges for collecting a combined $29,205 in benefits for which they were not entitled. Read more
Escambia Man Arrested for Insufficient Workers’ Comp Coverage (FL) – Mauricio Soto of Mauricio Soto Concrete Construction Inc. has been arrested on charges of falsifying employment numbers with the intent of avoiding higher workers’ comp premium payments. Read more
North Andover Insurance Company Founder Admits to Insurance Fraud, Embezzlement (MA) – Al Perry, the former chairman of the North Andover School Committee, has admitted to stealing thousands of dollars of clients’ insurance premiums, leaving them without workers’ compensation and other insurance coverage. Read more
Former Owner of Mingo County Trucking Company Sentenced (W.Va (AP)) – Leonard H. Cline, Jr., the former owner of a Mingo County trucking company, has received a suspended sentence and probation for defrauding the workers' compensation system of more than $500,000 in unpaid premiums, penalties and claims for benefits. Read more