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 15, 2011
Caterer Caught on Camera Cooking and Coordinating Events While On Workers' Comp (OH) - As a result of his guilty plea to workers' compensation fraud, Duane Funtash must repay more than $76,000 for fraudulently receiving temporary total disability benefits after a video that was key to his conviction showed he was running Dar's Catering while he was allegedly disabled from a previous work injury. Funtash was observed working in every aspect of the business, including coordinating events, cooking and event preparation. Read more
Oklahoma Man Charged With Three Counts Of Workers' Compensation Fraud (OK) - Raul Obed Orozco has been arrested after being charged with three counts of workers' compensation fraud and one count of engaging in a pattern of criminal offenses. Orozco is accused of filing a fraudulent workers' compensation claim on August, 2010, for injuries allegedly sustained while working at J&J Solutions. He claimed that while lifting a flamer/respirator, his co-worker stumbled and he suddenly had to bear the entire weight of the 60 pound device, injuring his back. Orozco sought medical treatment in Tulsa in November 2010 and in Stillwater in 2011. After receiving complaints, investigators found probable cause that crimes were committed. Read more
Attorney Working As Car Salesman May Be On His Way To Prison For Stealing From Clients (FL) - Suspended attorney Ronald Rider faces up to 30 years in prison after pleading no contest to organized fraud. As a result of a plea bargain, charges against his wife, Wendy Rider, were dropped. Rider was accused of stealing money from his clients. The largest theft was $80,000 for a workers' compensation claim that he failed to pay to a client. The client found that Rider's office was closed when he attempted to collect his money. Read more
Selling Police Memorabilia Lands Disabled Police Officer In Federal Court (PA) -Richard Rufo, a police officer at the Philadelphia Mint, has been arrested on federal charges for collecting federal workers' compensation benefits while running his own business. He originally injured his back while closing a gate at the Mint, and while on disability he operated United Safety Supply Co., a home based business where he sold law enforcement badges, pins, patches, coins, T-shirts, and hats. Read more
Police Officer Who Shot Himself To Be Fired After Guilty Verdict (CA) - Jeff Stenroos, a police officer with the Los Angeles school system, has been found guilty of insurance fraud and workers' compensation fraud for his participation in a hoax where he claimed that he was shot by a burglary suspect outside of a school. The superintendent of the Los Angeles Unified School District has called Stenroos a disgrace and said that as a result of the conviction, Stenroos will be fired from his job. Read more
Medical Equipment Company To Repay $400,000 for Improper Billing (OH) - A durable medical equipment company has reached a settlement with the Ohio Bureau of Workers' Compensation in a case involving improper billing of services and products provided to Ohio injured workers. Modern Medical, Inc., an intermediary between other durable medical equipment companies and injured workers, has agreed to repay $400,000 to settle the four-year old case. Modern Medical engaged in double billing for durable medical equipment supplies, unbundling of equipment, billing for accessories that were provided at no cost by the manufacturer, billing of its home health services by using multiple codes to bill for the same service, and improperly billing for services related to transporting injured workers. Read more
Pancake House Waitress Seen Working At Café After Tripping Over Mat (OK) - Zeina Khatib has charged with one count of workers' compensation fraud. Khatib filed a workers' compensation claim for injuries to her right fingers, neck, head, knees, brain, left hand, wrist, arm and shoulder when she tripped over a mat and fell while working at the International House of Pancakes (IHOP). She sought medical treatment the following month for the work-related injuries. In a deposition, Khatib stated that she was not working and had not worked since sustaining her injuries. However, investigators observed Khatib working on multiple occasions at Ben's Café - talking food orders, pouring coffee, bussing tables, and running the cash register. Read more
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