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 - January 19, 2012
Disc Jockey Faces the Music for Workers' Compensation Fraud (OH) - Randall Schornack has pled guilty to workers' compensation fraud charges after investigators caught him on video entertaining partygoers and bar patrons as a disc jockey. Investigators received an anonymous tip that Schornack was working as a disc jockey at several bars under the name "DJ Randy Stevens" while also receiving temporary total disability benefits. The video showed Schornack unloading and carrying speakers and other equipment from his vehicle into different establishments on a weekly basis and performing work services as a DJ. Read more
Roof Con Artists Try To Sell Elderly Woman Unneeded Repairs On A Like New Roof (FL) - Bartholomew Rafferty, Patrick Rafferty, Charles Evans, and Alexander Parker have been arrested on charges of burglary, grand theft, exploitation of the elderly, and workers' compensation fraud. Sheriff deputies organized an undercover investigation that caught the defendants allegedly offering to do roof repairs for an elderly woman on a roof that actually required no repairs. Read more
Company Lied About Number of Employees and Size of Payroll To Insurer (TX) - Granbury Contracting & Utilities, Inc. has pled guilty to workers' compensation fraud-related charges and has been ordered to pay $149,000 in restitution to Texas Mutual Insurance Company. For five years Granbury Contracting misrepresented the number of its employees and its payroll to Texas Mutual, resulting in lower insurance premiums. Read more
Non-Employee Filed For Workers' Compensation Benefits (OH) - Kelly Smith has pled guilty to workers' compensation fraud for filing a false claim. Smith filed a claim for a workplace injury against a company even though she had never worked for the company. Read more
Boss Feels Sorry For Employee and Helps Him Lie (OK) - Workers' Compensation fraud charges have been filed against Christopher Miller and Misti Rose Daigle. Miller was employed as a maintenance man at an apartment complex where Daigle was the manager. Miller was purportedly injured after being attacked by three males on the apartment grounds. Daigle allegedly felt sorry for Miller and told him to file for benefits for being injured on the job. Read more
Double-Dipper Worked Secretly For Three Years (OH) - William Hill has pled guilty to a felony count of workers' compensation fraud for working while receiving benefits and has been ordered to pay restitution of $131,919.43 in the amount of $100 a month. Hill was suspected of working for his own company while receiving temporary total disability benefits. An investigation verified that Hill was operating Hill's Contracting Company for three years in direct conflict with his disability benefits. Read more
Former Air Traffic Controller No Longer Flying High After Fraud Convictions (VA) - Raymond Elmo Deskins, III, a former air traffic control specialist at the Washington Air Route Traffic Control Center, now faces a possible prison sentence after his conviction for mail fraud and making false statements. During a four year span, Deskins collected disability benefits and claimed he could not engage in any employment, while hiding his other employment as a construction foreman. Read more
Postal Carrier Raised Alpacas While Unable To Deliver the Mail (OH) - Karen Anderson-Bagshaw has been sentenced to one year in a federal prison after her conviction for mail fraud and workers' compensation fraud. While collecting disability benefits because she was unable to work at the Post Office, investigators videotaped her running an alpaca farm and exceeding the physical limitations that had prevented her from returning to work at the Post Office. Read more
Woman Arrested on Theft Charges (FL) - Rosemary Stalhood has been arrested on charges of third-degree grand theft and workers compensation fraud. Read more
Businessman Pleads Guilty to Hiding Payroll from Workers' Compensation Insurer (TX) - Marvin Solano has pled guilty to workers' compensation fraud-related charges and has been ordered to pay restitution of $140,000. Solano owned Elamar, Ltd., doing business as Mastercare Gardens. He obtained workers' compensation coverage through Texas Mutual Insurance Company from February 2006 to May 2008. During that time, he concealed payroll through various family operated companies he controlled. Read more
California Contractors State License Board Continues Sting Operations (CA) - The most recent sting operation by the Contractors State License Board's Statewide Investigative Fraud Team resulted in the arrest of 21 unlicensed contractors who bid on potential residential jobs in excess of $500. Five of the unlicensed contractors were also charged with failing to maintain workers' compensation insurance. Read more
Snow Plowing While On Disability Results In Conviction and Probation (OH) - Kenneth McElroy has been sentenced to five years of community control after pleading guilty to a felony count of theft for working while receiving benefits. McElroy was self employed in snow plowing and repairing lawn mower/landscape and construction equipment while receiving temporary total disability benefits. Read more
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