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 8, 2012
Former Elected Offcial With Wet Hair Indicted on Federal Fraud Charges (ME) - A federal grand jury has indicted Carole Swan on charges of Hobbs Act extortion, making false statements in federal income tax returns, making false statements to obtain worker's compensation benefits, and obtaining over $5,000 by fraud from a program receiving federal funds. Among the charges, Carole Swan is accused of seeking workers' compensation benefits while claiming that she could not clean her house or even blow dry her own hair by herself. During this period of time though, she failed to disclose that she worked for Marshall Swan Construction and a harness horse racing business, and she underreported the numbers of hours she worked as a Selectman for the Town of Chelsea. Read more
Hawaii Construction Task Force Fines Townhouse Contractors For Workplace Violations (HI) - State officials have cited and fined for workplace safety violations several construction companies that were working on the large Maili Beach Place townhouse project. The fines included those that were assessed against seven of the construction companies that had failed to pay for workers' compensation insurance. Read more
Camp Lejeune Civilian Employee Given Probation and Home Monitoring For Working Multiple Jobs While On Disability (NC) - Michael Lanier, who worked at the important Marine base, Camp Lejeune, has been sentenced to five years' probation with six months home monitoring for lying to obtain his Federal Employment Workers' Compensation Benefits. While receiving benefits because he certified that he was not working, Lanier was found to have worked as a property manager and delivery driver for two local pharmacies, a sales representative and manager in a used car sales business, and a vehicle dismantler and general worker in a vehicle scrapping business. Read more
Phony Broker Sentenced on Workers' Compensation Insurance Scam (NC) - Carl Dale Fuller has been sentenced to five years in prison, to be followed by three years of supervised release, and he has been ordered to pay $2, 859,067 in mandatory restitution. Fuller had pled guilty to mail fraud in connection with a scheme to defraud National Employees Services of more than $2.8 million in what the company believed were insurance premiums for workers' compensation insurance. To execute his scheme, Fuller used the name David Walters in e-mails and phone calls and held himself out to NES as an insurance broker. Fuller falsely claimed that he would obtain workers' compensation insurance policies for NES and the companies they represented. Instead, Fuller kept the payments and never provided insurance coverage. Read more
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