Workers' Comp Fraud Blotter (5/17/2012) – Laundry Owners Unable To Hide Dirty Dealings With Employees Behind Soap Suds

Workers' Comp Fraud Blotter (5/17/2012) – Laundry Owners Unable To Hide Dirty Dealings With Employees Behind Soap Suds

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 - May 17, 2012

Laundry Owners Unable To Hide Dirty Dealings With Employees Behind Soap Suds (CA) - Lonnieta McCallum and Kevin McCallum, the owners of Sudz Cyber Laundry, have pled guilty to failing to maintain workers' compensation insurance and evading unemployment insurance taxes. Based upon complaints from former employees, investigators found that the McCallums were classifying their employees as independent contractors so that they could avoid paying workers' compensation insurance and unemployment taxes.   Read more

Jury Convicts Boston Marathon Runner Who Was Collecting Workers' Comp Benefits (FL) - A federal court jury has convicted Jacquelyn V. Myers of healthcare fraud and making false statements to obtain workers' compensation benefits. Myers, a letter carrier, reported that she had suffered a lower back injury during the annual letter carriers' food drive and could not deliver the mail because she could not twist and bend at the waist. She was placed on light duty, and while unable deliver the mail, she competed in more than 80 athletic events, including 5K races, 10K races, triathlons, and marathons, including the Boston Marathon.  Photographs and videotapes showed Myers running barefoot on gravel in a cross-country event, and swimming, cycling, and running in a triathlon, with her race times improving after her alleged injury.   Read more

Car Sales Ad Dooms Salesman's Double-Dipping Scheme (OH) - Myron Rose has pled guilty to receiving workers' compensation benefits while also working. Investigators received a fraud tip after Rose was pictured in an advertisement as a salesman for Fairdale Auto Sales in a local newspaper. The investigation found Rose knowingly worked for Fairdale Auto Sales during the period he was receiving non-working wage loss compensation benefits.   Read more

Postal Worker Who Faked Robbery Admits Making False Statements To Postal Inspectors (PA) - Jeffrey Allen Gogets, a post office supervisor, has guilty in federal court to a charge of false statements. Gogets staged an assault and robbery on his himself while on postal property by self-inflicting a wound to his head. Based upon the feigned injury, Gogets was flown by Life Flight helicopter to a hospital and received $8,578.94 in healthcare and workers compensation benefits. Gogets later made false statements about the assault and robbery to United States Postal Inspectors who were investigating the incident   Read more

College Employee Arrested For Double-Dipping (NY) - Stephen Boyd, who worked as an audio visual services manager for Broome Community College, has been charged with workers' compensation fraud and grand larceny. Boyd filed for workers' compensation benefits for a job related injury and received $5,975.74 in benefits. He claimed that he was unable to work and he failed to disclose that he was working for another employer while collecting benefits.   Read more

Contractors At Walmart Store Shut Down Over Misclassification Of Employees (CT) - The Connecticut Department of Labor has issued stop work orders to three contractors who were working on the expansion of a Walmart store. VL Drywall, Kentucky Steel Erectors, and Providence Building Co. Inc. have been cited for misclassifying their employees in efforts to avoid paying employment taxes and workers' compensation premiums.   Read more

Owner Failed To Pay Insurance Premiums After Filing Payroll Reports (OH) - Janell Howell, the owner of Jump Start Child Development Center Inc., has been found guilty of two counts of failure to comply for operating without the required workers' compensation insurance coverage. She did not cooperate with repeated attempts to bring Jump Start Child Development Center up-to-date on its workers' compensation insurance policy. Howell completed required payroll reports but failed to establish a payment plan or make any payments.   Read more

Claimant Used Fictitious Medical Providers For Claims (FL) - Lamar Sintel Pringle has been charged with filing false claims under the Federal Employees Compensation Act. Pringle filed his claims using false names of health care and medical service providers, as well as using the identification of a medical provider in Illinois.   Read more

Connecticut Department of Labor Issues Stop Work Orders to 13 Companies (CT) - The Connecticut Department of Labor's Division of Wage and Workplace Standards has issued stop work orders to 13 companies working at construction project sites. Stop work orders are levied against companies that misclassify workers as independent contractors with the intent of avoiding their obligations under federal and state employment laws covering such matters as workers' compensation, unemployment taxes and payroll reporting.   Read more

Cafe Worker Was Also Being Paid Temporary Total Disability Benefits (OH) - Raymond Adams has pled guilty to one count of workers' compensation fraud for working while receiving benefits. Adams was found to be receiving wages from Spat's Cafe while also receiving temporary total compensation for a workplace injury.   Read more

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