Workers' Comp Fraud Blotter (12/8/2011) – Business Owner Not So Clean After Arrest For Insurance Fraud

Workers' Comp Fraud Blotter (12/8/2011) – Business Owner Not So Clean After Arrest For Insurance Fraud

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 - December 8, 2011

Business Owner Not So Clean After Arrest For Insurance Fraud (CA) - Robert Francis Gale, who owns three business and home cleaning companies, Ace Building Maintenance, Inc., Norcal Services Group, Inc., and Maids @ Home, has been charged with four felony counts of workers' compensation insurance fraud. Gale is alleged to have underreported the wages of his employees and misrepresented the nature of his business and its safety record in order to reduce his workers' compensation insurance premiums by more than $1 million.   Read more

Corrections Officer To Face Charges For Double-Dipping (NY) - Frank Caporale, who is a corrections officer at the Midstate Correctional Facility, has been charged with offering a false instrument for filing and fraudulent practices for submitting false written statements relating to his workers' compensation claim. Capoale is alleged to have falsely stated that he was not working while collecting $10,540 in benefits, when in fact he was working at a second job.   Read more

Fully Catatonic Disabled Roofer, Under Fulltime Care Of Wife, Passed Drivers Tests (CO) - Martin Lobatos and his wife, Belen Luna Lobatos, have been charged with stealing $120,000 worth of workers' compensation benefits. Martin first filed a workers' compensation claim in 2008 after falling off a ladder, and in 2009 he claimed that his condition was worsening because of dizziness, memory loss, and difficulty recognizing his own children. By 2010 he claimed to be fully catatonic, and his wife began to receive $4,000 a month to care for him. During her care, he was able to pass his drivers tests and was found to be driving and shopping.   Read more

Florida Woman Arrested (FL) - Jacqueline Doreth Cherry, age 57, has been charged with workers compensation fraud.   Read more

Former County Highway Man Arrested For Fraud (NY) - Leonard R. Drown, a former motor-equipment operator with the Clinton County Highway Department, has been charged with workers compensation and insurance fraud. Drown allegedly continued to work in his own capacity without reporting that to his employer or insurance carrier, and thus received workers compensation benefits that he was not entitled to.   Read more

Cooked Books Lands Former Auditor For State Workers' Comp Agency In Jail (WA) - Cynthia Blancaflor, a former auditor with the Washington Department of Labor and Industries, and her husband, Othniel Blancaflor, have been sentenced on charges of theft and employer false reporting. The Blancaflors operated an adult-family home business, and they were found to have been underreporting their payroll after two employees filed wage complaints with the Department of Labor and Industries.   Read more

Amsterdam Man Sentenced For Doctor and Pharmacy Shopping (OH) - Thomas McAllister has been sentenced to 30 days in a county jail and his driver's license will be suspended for six months  as a result of his guilty plea to deception to obtain dangerous drugs. McAllister had a valid claim for a workplace injury with the Ohio Bureau of Workers' Compensation, but he was found to be abusing the system by visiting multiple physicians and pharmacies in order to receive more narcotics than necessary.   Read more

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