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 - July 12, 2012
High Heels and Romance In the Park Lead To Arrest For Insurance Fraud (CA) - Modupe Adunni Martin has been charged with insurance fraud for faking an injury in order to collect workers' compensation benefits. Martin claimed that she could not work as a result of an ankle injury that she sustained while working as a school custodian. She subsequently made ten visits to her doctor using crutches, but she was often recorded on video walking without them after leaving the doctor's office. On one occasion, she was taped throwing her crutches in her car, changing into high heels, and then meeting her boyfriend in a park for a romantic encounter. Read more
Staff Leasing Service, Its Caribbean Insurer, and Owners Liable For Multi-Million Dollar Judgment (TX) - A Texas Court of Appeals has upheld a multi-million dollar verdict against Business Staffing, Inc., its related Caribbean insurance company, Transglobal Indemnity, Ltd., other related entities, and the owners of these various companies, to Cody Jackson, who was a leased employee of BSI to his family firm, Jackson Brothers. Cody was seriously injured and incurred medical expenses in excess of a million dollars after he was burned when the hot oil truck he was driving caught fire, and BSI and Transglobal failed to pay for those medical bills. Download the Opinion to read more
Former Governor and Insurance Attorney Sentenced To Probation For Laundering Campaign Contributions (MO) - Former Missouri Governor Roger Wilson, who served as CEO of the state-created workers' compensation company, Missouri Employers Mutual Insurance Co., and St. Louis attorney Ed Griesedieck, who served as counsel to the insurer, have both been placed on probation in federal court for laundering campaign contributions in the amounts of $5,000 and $3,000. Wilson and Griesedieck made the campaign contributions and then attempted to have Griesedieck's law firm bill the insurer for non-existent legal services and costs in the amounts of the contributions. Read more
Operation Underground Takes Aim at Off the Books Activity (CA) - Investigators from the Contractors State License Board and their counterparts from the California Department of Insurance, Employment Development Department, and county district attorneys' offices partnered for a series of sweeps at suspected illegal construction sites. Sweeps were conducted in 11 counties, where 104 enforcement actions were issued for failure to carry workers' compensation insurance, under-reporting the number of workers to obtain cheaper insurance premiums and to pay less payroll withholding tax, and cash payments to hide unregulated practices. Some contractors received stop orders for the workers' compensation insurance violations, and they would not be allowed to use employee labor until they obtained a policy for their workers. Read more
Government Millwright Double-Dipped In St. Lawrence Seaway (NY) - Thomas Schneller has pled guilty in federal court to lying about his work status in order to fraudulently collect federal worker's compensation benefits. While Schneller was collecting disability benefits from his work with the St. Lawrence Seaway Development Corp., he made false statements that he was not otherwise employed, but he was operating his own company, AKJ Marine, a marine contracting company that did work also on the St. Lawrence River. Read more
Owner of Auto Body Shop In Jail Awaiting Preliminary Hearing On Fraud Charges (CA) - Martin Calvario Moya, the owner of Moya Auto Body Shop, is in jail unless he can post bond as he awaits a preliminary hearing at the end of July. Moya is charged with failing to have workers' compensation insurance for his employees, making false insurance claims, forgery, and violating his probation on a previous check forgery conviction that arose from an embezzlement scheme by his wife, Elena Moya. Read more
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