Workers' Comp Fraud Blotter (7/26/2012) – School Custodian Sells Houses While On Disability

Workers' Comp Fraud Blotter (7/26/2012) – School Custodian Sells Houses While On Disability

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 - July 26, 2012

School Custodian Found To Be Selling Houses While On Disability (OH) - Greg Robinson has pled guilty to felony workers' compensation fraud and has been ordered to pay restitution in the amount of $31,305.87 in order to avoid six months in jail. After Robinson began receiving temporary total disability benefits for an injury that occurred while he was a custodian for the Berea schools, he started working for two real estate agencies selling homes and conducting broker price opinions of properties.   Read more

Fraud Defendant Goes From Playboy Mansion to Federal Prison to Mother's Home With Terminal Cancer (PA) - Charles Costanzo, a former partner in Executive Claims Administration who was convicted in federal court of embezzling nearly $650,000 from the Lackawanna County's workers' compensation fund and sentenced to 70 months in prison, has been released from a federal prison to live with his mother because he has been diagnosed with Stage IV stomach cancer and is terminally ill. Costanzo used some of the funds that he stole to take one of the county commissioners on a trip to the Playboy Mansion to meet Playboy Magazine publisher Hugh Hefner and his Playboy Bunnies.   Read more

Videotape of Construction Work Leads Directly to Jail, Do Not Pass Go (WA) - Michael Cox, who was convicted by a jury on two counts of theft for fraudulently claiming nearly $40,000 in workers' compensation benefits, has been sentenced to six months in jail. Cox had filed a workers' compensation claim and was receiving wage replacement benefits based upon his claims that he could not work. Investigators videotaped Cox working on the construction of a house, which became evidence that he did not have the physical limitations he had claimed.   Read more

Insurer's Investigation Results in Fraud Conviction and Restitution (TX) - Henry Gomez has been convicted of workers' compensation fraud-related charges for double-dipping. Gomez reported a job-related injury while working as a truck driver and supervisor for Wims Environmental, Inc. He claimed that he was unable to work as a result of the injury, and Texas Mutual Insurance Company began paying income benefits to him. The insurer then discovered that Gomez was also working as a sales consultant for a different company.  The court ordered Gomez to pay $1,155 in restitution to Texas Mutual and sentenced him to seven months' deferred adjudication.   Read more

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