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 - March 1, 2012
Injured Chef Keeps Cooking Corn For Two More Employers While Disabled (OH) - Kevin Corn has pled guilty to theft and has been ordered to pay restitution of more than $14,000 for working while receiving workers' compensation disability benefits. Corn was originally injured and filed a workers' compensation claim while working as a chef, but an investigation revealed that he then began working as a chef for two more employers while collecting his disability check. Read more
Corrections Guard Pleads Guilty To Fraud, But Will Not Go To Jail (NY) - Donald R. Velie Jr., a corrections officer at Lyon Mountain Correctional Facility, has been ordered to pay restitution of $7,408.98 as a result of his guilty plea to workers' compensation fraud. While he was receiving workers' compensation benefits, Velie failed to inform his employer and insurance carrier that he was also working as a private contractor. Read more
Former State Workers' Compensation Director Claims Prosecutors Used False Testimony To Convict Him (ND) - Sandy Blunt, the former director of the North Dakota Workforce Safety and Insurance agency, has filed a petition in federal court that attacks his state court conviction for misspending state funds. Blunt has claimed that prosecutors Richard Riha, Cynthia Feland and Lloyd Suhr knowingly used perjured testimony and failed to provide his defense counsel with exculpatory evidence. Feland, who is now a state court judge, is facing a possible suspension of her law license by the North Dakota Supreme Court for her role in Blunt's prosecution. Read more
Business Owner Accused Of Fraud To Save Hundreds of Thousands of Dollars in Insurance Premiums (LA) - Richard H. Woodle, the owner of Streamline Framing, Inc., has been arrested on felony charges of willful misrepresentations by an employer and unlawful practices. Woodle is accused of making false statements to his workers' compensation insurer over a three-year period in an effort to avoid paying workers' compensation premiums for employees of his company. By making these false statements, it is estimated that Woodle avoided paying hundreds of thousands of dollars in premiums. Read more
Roofer To Work During The Day, Sleep At Night In City Jail Cell (CA) - Roofing contractor Michael Amzie Holley has been sentenced to a year in a city jail instead of serving time in a state prison so that he can work and pay $510,883 in restitution to the California State Compensation Insurance Fund and the Employment Development Department. Holley pled guilty to purchasing the minimum workers' compensation insurance policy for his company and reporting that he had no employees, while he paid his employees with cash to hide his payroll. Read more
Youth Case Worker Caught Double Dipping At Hospital (TX) - Paula Schoolfield has been sentenced to one year of probation and ordered to pay restitution to Texas Mutual Insurance Company after her conviction on workers' compensation fraud-related charges. After Schoolfield claimed that she was unable to work as a result of a job-related injury at Hill Country Youth Ranch and began receiving income benefits, she was found to be gainfully employed as a secretary at a hospital. Read more
NIU Employee Who Claimed He Could Not Lift Gallon of Milk Is Indicted On Fraud Charges (IL) - Joshua Klassen, who claimed that he injured his back and elbow while working as a building services worker at Northern Illinois University, has been arrested on six counts of unlawful violation of the workers' compensation act. Klassen allegedly falsely claimed that he could not do any work, that his pain was persistent, and that he was even unable to lift a gallon of milk with his left arm. Read more
Separate Incorporations For Five Restaurants Causes Workers' Compensation Headaches (MA) - The Massachusetts State Division of Industrial Accidents (DIA) has shuttered the five Bangkok Cuisine restaurants owned by Somsak "Sam" Sangworn because he has failed to show workers' compensation insurance policies for each location. The DIA said that because each restaurant was separately incorporated, he was required to maintain and produce individual insurance policies. Sangworn claims that that his insurance agent has created the separate policies, but that they are not showing up yet in the state's insurance system. Read more
Corrections Officer Falsely Claimed He Was Injured While Participating In Defense Tactics Training (FL) - Keith Jackson has been charged with workers' compensation fraud and grand theft after an investigation revealed that he submitted false insurance claim information regarding pre-existing conditions. Jackson claimed to have injured his back and foot while participating in defense tactics training as an Orange County corrections officer. Jackson's claim was initially deemed compensable; however it was later determined that he made false statements and omitted material information about his medical conditions. After he was arrested, Jackson was booked into the Orange County Jail. Read more
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