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, convictions and investigations.
Workers' Comp Fraud Blotter - September 23, 2010
Gas Station Owner Faces Murder/Arson Trial Now, Workers Compensation Fraud Trial Later (CA) - James Kurtenbach, who owed $ 3 million in back taxes on his gas station, went to trial this week on charges that he persuaded one of his employees to burn down his rental home, causing the employee's death. Kurtenbach's trial on workers' compensation fraud and tax fraud will be held at a later date. Read more
Widow Charged With Cashing Murdered Husband's Disability Checks (CA) - Brenda Lee Piper has been charged with cashing four disability checks that were sent for her husband after he was the victim of a homicide. Her husband had been on disability leave from work when he was murdered, and the disability insurance carrier was not immediately aware of his death. Read more
Owners of Temporary Employment Agency Plead Guilty to Hiding Actual Payroll Amounts (MA) - Jennifer Mileski and her common law husband Kinh Dinh Do have pled guilty to a three-count criminal information of conspiracy, mail fraud, and assisting in the preparation of false tax returns. They concealed the true size of their payroll from the IRS and from their workers compensation insurer in order to reduce their employer payroll taxes and their workers compensation insurance payments by paying cash to their employees and telling their payroll service that they had no work to send their employees to. Read more
Insurance Agents Charged With Stealing Workers' Compensation and Liability Insurance Premiums (PA) - Additional charges have been filed against Kevin John Pickell and Robert Francis Pickell, cousins who operated a now defunct insurance brokerage firm. The new charges, as well as the already pending charges, accuse the men of stealing insurance premiums that were supposed to pay for workers' compensation insurance, liability coverage and other insurance policies for various businesses, public school districts and other organizations. Read more
Injured Firefighter's Attorneys File Response To City's Motion To Vacate Jury Award (WA) - The attorneys for Mark Jones, a former firefighter who received a $12.75 million jury verdict for injuries that he sustained when he fell through a fire-station pole hole, have filed a reply brief to the City of Seattle's motion to vacate the judgment, arguing that secret videos showing Jones engaging in physical activity do not contradict the jury's finding that he sustained permanent mental injuries and future physical limitations. Read more
Real Estate Developer, Son, and Daughter Charged With Worker's Comp Fraud and Prevailing wage Violations (OH) - Larry Gunsorek, his son, Jason Gunsorek, his daughter, Megan J. Burkholder, and two family businesses, Anchor Realty Construction Inc. and Anchor Management Group, Inc., have been charged with failing to pay prevailing wages on state contracts and engaging in workers' compensation fraud. Read more
Twelve Unlicensed Contractors Arrested in Homeowner Bidding Undercover Operation (CA) - An undercover operation by the California Contractors State License Board and other governmental agencies has brought about the arrest of twelve men for contracting without a license, illegal advertising, and excessive down payment violations. The men bid on home improvement projects exceeding $500 without possessing a state contractor's license. One of the requirements for licensing is that contractors must carry workers' compensation insurance. Read more
California Labor Commissioner Cites 79 Restaurants For Workers' Compensation and Wage Violations (CA) - The Labor Commissioner recently conducted a statewide enforcement sweep of 162 restaurant inspections and issued 88 citations against 79 restaurants. Investigators found 74 businesses that failed to provide workers' compensation coverage for their employees. Citations issued for no workers' compensation totaled $377,000 and businesses without coverage were issued stop work orders, which prevents them from operating with employee labor. Read more
Convictions Of Former Folsom State Prison Correction Officer Affirmed On Appeal (CA) - June Ann Lucena was convicted of eleven counts of workers' compensation fraud and single counts of theft by false pretenses, attempted perjury, and filing a false claim, all relating to workers' compensation benefits, industrial disability leave, temporary disability, and disability retirement that she received for injuries from a fall from a guard tower. The California Court of Appeal affirmed all but the single conviction of filing a false claim. Read more
Carting Company Owner Charged With Workers' Compensation Fraud (NY) - Jarruth Duncan, the owner of Chesterfield Carting, Inc., has been charged with offering a false instrument for filing in order to cheat the New York State Insurance Fund (NYSIF) out of more than $50,000 in an alleged case of worker's compensation fraud. Duncan allegedly underreported his payroll to avoid paying the proper premium on a workers' compensation policy with NYSIF. Read more