Workers’ Comp Fraud Blotter (9/27/2012) – Businessman Convicted in $3.1M Workers’ Comp Fraud Case

Workers’ Comp Fraud Blotter (9/27/2012) – Businessman Convicted in $3.1M Workers’ Comp Fraud Case

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 - September 27, 2012

Check Cashing Store Owner Arrested (FL) – Barbara Macineira, owner of JC Check Cashing Store, Inc., was arrested for alleged involvement in a large-scale check cashing scheme. The Workers’ Compensation Fraud Joint Task Force claims that various shell construction companies operated an ongoing workers’ comp premium fraud scheme and conspired with Macineiras to file fraudulent currency transaction reports totalling over $3.5M with the Dept. of Treasury. Read more.

Businessman Convicted in $3.1M Workers’ Comp Fraud Case (CA) – Steven Morales was convicted on three counts of workers’ comp fraud and one count each of tax fraud and perjury. According to prosecutors, he and his son cheated more than 400 employees out of insurance premiums for unemployment insurance from 2005 to 2008. He awaits sentencing October 15. Read more.

Injured Worker Who Submitted Fictitious Bills Enters Guilty Plea (NH) – Phyllis J. Graham pleaded guilty to Class A felony charges of theft by deception and attempted theft by deception, among other things. According to the Attorney General, in 2009 and 2010, Graham created fictitious bills and sought reimbursement for bills she said she had paid from Sedgwick, the administrator for her 2007 workers' comp settlement. Investigators discovered that Graham never received the services claimed, and that the bills submitted and the information on them were fraudulent. Read more.

Contractor Sweep Nets 15 Citations (WA) – The Dept. of Labor & Industries swept through Pierce County last weekend, citing more than a dozen contractors for working without being registered. Unregistered contractors or those who don’t pay workers’ comp premiums for their employees can underbid their competition and thereby gain an unfair business advantage. Read more.