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 - October 27, 2011
Bingo Chairperson Failed To Report Her Employment While Collecting Disability Benefits (OH) - The Franklin County Court of Appeals has denied a request for a writ of mandamus by Katherine A. Dearing to order the Industrial Commission of Ohio to vacate its order finding that Dearing was overpaid compensation for permanent total disability and temporary total disability and to vacate its order finding that she engaged in fraud. The Commission had found that while receiving benefits, Dearing had been employed by the Akron Arid Club as the primary Bingo officer and had concealed that employment. The court found that Dearing worked regular hours several days a week and was compensated with gift cards, which she reported on her tax returns as income. Free Download of the opinion and read more(Lexis.com subscribers can access the Lexis enhanced version of the State ex rel. Dearing v. Indus. Comm'n, 2011 Ohio 5466 (Ohio Ct. App., Franklin County Oct. 25, 2011) decision with summary, headnotes, and Shepard's.)
Workers' Compensation Trial For Historic Inn Owner Scheduled Again (CA) - Sanjiv Kakkar, the owner of the Brookdale Inn and Spa, which in its heyday hosted celebrities such as Marilyn Monroe, is scheduled for a trial early next year on two counts of insurance fraud, failure to maintain workers' compensation insurance, and passing off bad checks. Kakkar is accused of persuading an employee to not file a worker's compensation claim after a work injury. Read more
Ohio Woman Indicted on Workers' Compensation Charges (OH) - Amy E. Bay has been indicted by a Fairfield County grand jury on two counts of workers compensation fraud and two counts of theft by deception. She is accused of making false statements involving workers' compensation in two different time periods. Read more
Ohio Man Indicted on Workers' Compensation Charges (OH) - Charles C. Bay has been indicted by a Fairfield County grand jury on two counts of workers compensation fraud and two counts of theft by deception. He is accused of making false statements involving workers' compensation in two different time periods. Read more
Tulsa Attorney Pleads Guilty to Workers' Compensation Fraud (OK) - Fred Schraeder, a longtime Tulsa criminal defense attorney, has been ordered to pay $36,000 in restitution and surrender his law license as a result of his conviction on one count of conspiracy to commit workers' compensation fraud. He was charged with embezzling his clients' personal injury benefits, insurance settlements, and workers' compensation benefits. A malicious prosecution lawsuit that he filed against the prosecutor was dismissed last July after he failed to appear for a scheduling conference. Read more
Former Owner Of Temporary Employment Agency Sentenced For Under-The-Table Scheme (MA) - Michael Powers, the former owner of Commonwealth Temporary Services, Inc., which supplied hundreds of temporary laborers to businesses throughout Eastern Massachusetts, has been sentenced to seven years in prison for his role in running a $30 million under-the-table payroll scheme. The scheme, which the sentencing judge found to be noteworthy for its brazenness and conniving ways, avoided more than $9 million in federal and state payroll taxes and workers' compensation insurance premiums. Powers had been convicted by a jury of one count of conspiracy to defraud the IRS and various workers' compensation insurers, one count of mail fraud, and two counts of filing false tax returns. Read more
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