Workers' Comp Fraud Blotter 12/11/2009 - Recent Arrests, Charges & Convictions

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 – December 11, 2009

Lawsuit Alleges Fraud by Workers’ Comp Insurance Company (NY) – The New York State Workers’ Compensation Board has filed a lawsuit against CRM Holdings, Ltd., alleging that certain directors and officer breached fiduciary duties owed to trusts that the company operated, with damages exceeding $405 million. Read more The New York Attorney General has also announced his intention to file charges of fraud against CRM Holdings, Ltd. for its marketing of group self-insurance trusts and its initial public offering of stock in December 2005. Read more

Prunedale Woman Arrested on Workers’ Comp Fraud, Elder Abuse Charges (CA) –Teresa Anne Lee of Prunedale was arrested Dec. 9 on suspicion of committing workers’ compensation insurance fraud, financial elder abuse and grand theft. Read more

Canadian Doctor Pleads Guilty to Workers’ Comp Fraud (WA) – Dr. Roger C. Andersen of pled guilty to three counts of third-degree theft, after illegally collecting workers’ compensation benefits while working in and the state of Washington for a medical device development company. Read more

Canoga Park Insurance Agent Sentenced for Felony Grand Theft (CA) – Randy Jay Barrett of Canoga Park was sentenced to 240 days in jail and five years probation after pleading guilty to one count of felony grand theft. An investigation showed that between April 2002 and May 2006 Barrett collected insurance premiums totaling $160,491 for workers’ compensation, liability and property coverage from his client. Barrett placed a portion of the coverage and refunded some of the monies, but left his client without workers’ compensation insurance for the entire period. Barrett failed to refund $36,401. Read more

Teen's Workplace Death Leads to Workers' Comp Fraud Allegations Against Doctor (WV) – A wrongful death lawsuit filed againt Dr. John A. Wade in Mason Circuit Court includes allegations that the doctor fraudulently induced Lori McCoy, the administratrix of the estate of Andrya Lynn Jordan - a teenager who died in November 2006 while working for him - to sign a workers' compensation claim form, which included a fraudulent W-2 form. McCoy alleges that the W-2 form incorrectly listed FICA-Social Security withholdings and FICA-Medicare withholdings and that such amounts were not deducted from Andrya's paychecks during the time she was working for the doctor in 2006. McCoy also alleges that the doctor failed to report Andrya as a employee on his third quarter 2006 report to the state Department of Employment Security and to pay workers' compensation premiums for Andrya. McCoy further alleges that these fraudulent acts committed by the doctor were done for the purpose of establishing Andrya as his employee and thereby enable him to seek immunity under West Virginia Code 23-4-2. Read more