Workers' Comp Fraud Blotter (1/5/2012) – State Senator’s Trucking Company Not Trucking So Much After Court Shuts It Down

Workers' Comp Fraud Blotter (1/5/2012) – State Senator’s Trucking Company Not Trucking So Much After Court Shuts It Down

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 - January 5, 2012

State Senator's Trucking Company Not Trucking So Much After Court Shuts It Down (VT) - A state superior court judge has issued a permanent injunction against Starrs United Inc., a trucking company owned by Vermont State Senator Bobby Starr and his son Eric Starr, after the trucking company continued to operate without workers' compensation insurance even after it was served with an emergency stop-work order by the Vermont Department of Labor. Stephen Monahan, the Director of Workers' Compensation and Safety for the Vermont Department of Labor, said this was the first time he could recall a company continuing to operate after the issuance of a stop-work order.   Read more

Washington Roofing Contractor Convicted In Montana Federal Court For Leaving Homeowners High and Not Dry (MT) - John Mulinski has been found guilty of eight counts of wire fraud after an investigation by the Secret Service for incomplete roofing jobs and a trial in the United States District Court for Montana. Mulinski faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release. The Montana Department of Labor and Industry initially investigated Mulinski on allegations that he was not providing workers' compensation for his employees, but the investigation spread to allegations that he had failed to complete roofing jobs that he had taken payments for.   Read more

Claimant Only Required To Pay Restitution For Benefits Received After She Lied (CA) - Nusrat Javed was convicted of insurance and workers' compensation fraud and ordered to pay restitution of $21,665.55. Although she had claimed several days after she tripped over a cord at work that she could not drive because of dizziness, an insurance investigator videotaped her driving a car and doing yard work. The Court of Appeal reversed the order of restitution, holding that she was not required to make restitution for the initial benefits she received for her injury prior to her false statements about driving.   Read more - Click for Free Download of Court of Appeal Decision

Sanitation Worker Accused of Falsely Claiming He Broke His Wrist at Employer's Medical Clinic (NY) - Ricky Cernera has been indicted on charges of perjury and grand larceny for filing an alleged fraudulent claim against the city falsely stating he injured himself in the line of duty. Cernera, who has since retired from his $64,000 a year job, claimed that he fell and fractured his wrist on the sidewalk outside the city's medical clinic, where he was headed for a medical examination on an unrelated work injury. Surveillance video at the clinic revealed that he had broken his wrist before he arrived at the clinic.   Read more

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