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 22, 2011
Painter Convicted Of Defrauding September 11th Compensation Fund Found Liable For Over $3 Million In Civil Penalties (NY) - Mario Mastellone, who was convicted in 2008 of defrauding the September 11th Victim Compensation Fund, was found liable to the United States for over $3 million in treble damages and civil penalties under the False Claims Act. Mastellone had been found guilty of fraud after he submitted an application to the Fund, stating that he had been permanently and totally disabled as a result of injuries sustained when he fled from the collapsing World Trade Center. The government then pursued the civil fraud action. Read more
Claimant Sought Narcotics From Numerous Medical Providers and Pharmacies (OH) - Cecil Webb has pled guilty to eleven felony counts of deception to obtain a dangerous drug and one first degree misdemeanor count of workers' compensation fraud. While collecting disability benefits, Webb sought narcotics from three different physicians and one nurse practitioner over the same period of time, and he utilized four different pharmacies in the Dayton area to conceal his deception. Read more
Comp Board Court Reporter Stole Identities To Help Basketball Referees Avoid Taxes (NY) - Gerard Fahy, a court reporter for the New York State Workers' Compensation Board, has pled guilty to conspiracy to commit identity theft and tax evasion. Fahy worked also as a basketball referee in an adult recreation league. He stole identity information from his work at the Compensation Board, and that information was used to hide the income of basketball referees so that they did not have to pay taxes on the income. Read more
Owner Used Altered Certificate to Conceal Operation of Business Without Workers' Compensation Coverage (OH) - Robert Black, the owner of Mallard Home Services, has pled guilty to workers' compensation fraud for operating his business without coverage. Brown was operating his business without workers' compensation insurance, and he provided a customer with an altered workers' compensation certificate of coverage. He claimed that the use of the altered certificate was just a clerical error. Read more
Workers' Compensation Payments Continued To Be Paid To Dead Man (NJ) - Anthony Hayes has been charged with using a stolen credit card and theft. Hayes used the debit card of a deceased relative to pay for car repairs. The debit card was to an account that was still receiving workers' compensation benefits for the deceased relative after the relative had passed away. Read more
Chiropractor Billed For Non-Existent Exercise Therapy Services (OH) - Dr. John Esarco, DC has been charged and found guilty of workers' compensation fraud for billing for services not rendered. Esarco was billing for exercise therapy, a service which he did not perform. Read more
Airport Subcontractor Short Circuited Rules By Failing To Maintain Workers' Compensation Insurance (NY) - Contracting Technology, Inc. was told to stop working as a subcontractor on an airport weather instrument power circuit for one month because it did not have workers' compensation insurance for its electricians. The New York State Workers Compensation Board and the Port Authority were notified of the insurance problem by a local union. After the company obtained a policy and recommenced work at the airport, one of its electricians sustained a non-fatal electrocution. Read more
Roofer Operated Company While On Total Disability (OH) - George Seiber is awaiting sentencing after pleading guilty to working while receiving benefits. While receiving temporary total disability benefits, Seiber owned and operated Roofer Inc.com and performed work activities including contacting customers, appraising roofs, preparing proposals, supervising staff, and handling money transactions. Read more
Slip and Fall Injury Leads To Workers' Compensation Fraud Charges (CA) - Carlos Tehran Bernal has been charged with workers' compensation insurance fraud, perjury, providing false government documents to conceal true citizenship, and identity theft. The charges arose from a workers' compensation claim that Bernal filed after he claimed to have sustained an injury from a slip and fall at work. Read more
Roofing Company Underreported Payroll (OH) - Dana Fordenwalt, the owner of Twin Peaks Roofing, has plead guilty to three misdemeanors for failure to comply with the law for underpaying his workers' compensation and misrepresenting the number of workers employed by his business. Over a period of three years Fordenwalt did pay his premium, but he was knowingly underpaying by submitting false payroll documentation. Read more
Department of Motor Vehicles Employee Was Double-Dipping While On The Job (CA) - Mia Rachel Brown has been charged with insurance fraud for collecting disability benefits while secretly working. Brown was collecting workers' compensation disability checks for an injury to her left knee and left hand that she sustained at Dean Foods when she slipped on a wet floor. After the injury she took a job with the DMV, but she stated in depositions and told her doctors that she was unable to work and often walked with a cane. Read more
Fraud Conviction of Owner of Elevator Installation Company Affirmed (OH) - The conviction of Marcus L. Brown for workers' compensation fraud has been affirmed by the Franklin County Court of Appeals. Brown billed and received two payments for the installation of a scooter lift on the truck of a workers' compensation claimant, even though the lift was never installed. Read more
For more information about LexisNexis products and solutions connect with us through our corporate site.