Workers' Comp Fraud Blotter 11/20/2009 - 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 – November 20, 2009

State Corrections Officer Charged With Workers’ Comp Fraud (NY) – Martin Friess, a North County corrections officer, has been charged with fraudulently receiving workers’ compensation benefits in excess of $10,000 over a year-long period. Read more

Staten Island Crime Sweep Includes Workers’ Comp Fraud Charges (NY) – Attorney General Andrew M. Cuomo and New York Police Commissioner Raymond W. Kelly announced the arrest of 22 individuals – including reputed “made men” from the Gambino and Luchese crime families and an active New York State Court Officer – on charges stemming from the operation of lucrative loan sharking and gambling activities closely controlled by organized crime. Included in the sweep was Christopher Cipriano, a loan sharking victim, who was charged with workers’ compensation fraud and grand larceny. Read more

Postal Carrier Charged With Workers’ Comp Fraud (NJ) – Martha L. Gaines, a rural route carrier for the U.S. Postal Service, was arrested on charges that she fraudulently obtained workers’ compensation exceeding $400,000. Gaines allegedly submitted a claim to USPS for a workplace injury, stating that she could no longer work, but an investigation showed she had received income from a cleaning business. Read more

Ex-Dann Staffer Sentenced; Ordered to Pay Restitution for Workers’ Comp Fraud (OH) – Anthony Gutierrez, a former state employee who worked for Attorney General Marc Dann during a scandal that led to the downfall of Dann, was sentenced to 45 days in jail and ordered to pay $6,876 in restitution to the Ohio Bureau of Workers’ Compensation. Read more

Rancho Mirage Restaurant Owners Charged With Tax Evasion, Workers’ Comp Fraud (CA) – Simon Sungheok Hong and his wife, Katie Kyanghee Shinn, the owners of Maki Maki, a Japanese restaurant in Rancho Mirage, have been accused of underreporting their payroll to the State Compensation Insurance Fund and the Employment Development Department, as well as underreporting sales tax revenue to the state Board of Equalization. Read more

Sacramento Business Owner Pleads Guilty to Workers’ Comp Fraud (CA) – Mark Anthony Correnti, who received benefits for a work injury since 1989, has pleaded guilty for falsely certifiying paperwork that he wasn't involved in or earning any income from any business when an investigation showed he owned a storage business since 2000. Read more

Wal-Mart Cashier Pleads Guilty to Workers’ Comp Fraud (CA) – Diane Lynn Hunter, who received benefits for a work-related back injury, pleaded guilty to workers’ comp fraud, insurance fraud, and perjury after video surveillance showed her performing a variety of tasks, including lifting items. Read more

Marsh & McLennan Reaches $400 Million Settlement With State Pension Funds and Ohio Bureau of Workers’ Compensation (NJ & OH) –A $400 million settlement has been reached in the class action securities lawsuit against Marsh & McLennan Companies, Inc., Marsh Inc., and former company executives Jeffrey Greenberg and Roger Egan (collectively “Marsh”), holding Marsh accountable for violating securities laws and harming the investments and retirement benefits of workers in Ohio and across the country. The Ohio Bureau of Workers’ Compensation and its Board of Directors, which are entrusted to protect, administer and maintain the funds needed to care for injured workers, had joined the lawsuit to send the message that it will go after those who act to harm Ohio’s workers’ compensation funds. This settlement allows the BWC to recoup some of the losses incurred due to the wrongful acts of Marsh. Read more

San Diego Woman Sentenced in Felony Grand Theft Case (CA) – Louise May Batchelor was sentenced to 365 days of work furlough, five years probation and ordered to pay restitution totaling $24,375 to four victims after pleading guilty to two felony counts of grand theft. It was alleged that Batchelor, who owned and operated Sunny SoCal Insurance Service and Louise Batchelor Insurance Service in San Diego, selling various types of insurance including automobile, property, general liability and workers’ compensation, pocketed premiums and issued bogus insurance certificates. Read more

Former IRS Chief Indicted for Theft and Workers’ Comp Fraud (FL) – Former Internal Revenue Service Special Agent David Domenic Leoce has been charged with theft of government funds and federal workers' compensation fraud. According to the indictment, Leoce received federal workers' compensation benefits from approximately 1997 through 2008, and claimed that during the period 2005 through 2008 he was not involved in any business enterprises or receiving income from any business, but public records indicated that during the 2005-2008 time period, he was a co-owner and manager of Leoce & Martin Enterprises, d/b/a Scratch the Surface Tattoo II. Read more

Auto Technician Accused of Workers’ Comp Fraud (NY) – Sanford Gravel, an auto technician, faces felony counts of offering a false instrument for filing, insurance fraud, and violating the Workers’ Compensation Law. According to investigators, Gravel allegedly received $25,326 in workers’ compensation benefits to which he was not entitled while stating in writing to NYSIF and in testimony before the Workers’ Compensation Board that he had not returned to any form of work, when the investigation allegedly uncovered that Gravel had been working for a number of years as an auto technician. Read more

Astoria Business Owner Arrested for Workers’ Comp Insurance Fraud (NY) – Pilar Marino, the owner of Advent Restoration in Astoria , faces felony charges including insurance fraud and violating workers’ compensation law for understating the business payroll. Read more

Kerhonkson Man Arrested for Workers’ Comp Fraud (NY) – Matthew Robbins of Kerhonkson, NY, faces felony charges of insurance fraud and violating workers’ compensation law for filing a comp claim, where he was classified as permanently totally disabled, but surveillance later showed he was well enough to handle powering washing equipment, repair vehicles, and fish waist deep in a running stream. In addition, investigators say Robbins received workers’ comp benefits while employed as a care taker. Read more

Montevallo Man Convicted in Workers’ Comp Fraud Trial (AL) – Robert Burrows has been convicted of two counts of making a false statement to receive workers’ comp benefits and one count of second-degree theft of property. Video evidence showed that Burrows misrepresented the extent and duration of his workplace injury to a workers’ comp doctor. Read more