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 - October 25, 2012
Former Insurance Agent Sentenced To Jail For One Year In Premium Theft Case (CA) - Richard Scott Webster Jr., aka Chris Webster, has been sentenced to 365 days in jail and ordered to pay $250,105 in restitution for theft of insurance premiums. Webster collected over $240,000 from a roofing contractor and over $9,000 from a pharmacy for workers' compensation insurance policies. However, Webster failed to remit the insurance premiums to the insurance companies, as required by state law, and kept the premiums for his personal use. The pharmacy's insurance policy was cancelled by the insurance company as a result of the theft by Webster. Read more
California's Fall Blitz Catches Both Repeat Offenders and New Unlicensed Contractors (CA) - The California Contractors State License Board arrested 92 contractors for operating without a license after an undercover sting throughout the state. Fourteen of the phony contractors were issued Stop Orders because they did not have workers' compensation insurance coverage for their employees. Investigators posed as homeowners seeking bids for home improvements such as painting, flooring, landscaping, fence repair, tree trimming, gutter installation, and water heater replacement. Read more
Fraud Investigation Leads To Police Officer's Suspension (VT) - Joseph Warfle, a police officer for the Rutland Police Department, has been suspended with pay from his position as a result of a criminal investigation by the Vermont State Police. Warfle has been placed on limited duty status while the investigation concerning workers' compensation benefits is conducted. Read more
School Custodian Pleads No Contest To Fraud After Romantic Romp in High Heels In Park (CA) - Modupe Adunni Martin has pled no contest to one count of of workers' compensation fraud for faking an injury in order to collect 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
Claimant Ordered To Repay Over $30,000 After Fraudulently Altering Paperwork (OH) - Keith Miller has been ordered to pay restitution in the amount of $30,240.31 after he admitted to altering paperwork he submitted to request injured worker benefits. Miller, who was receiving living maintenance wage loss, submitted wage statements that had conflicting work dates and appeared to have been altered. He ultimately admitted to altering the statement forms and submitting false payroll records in order to receive benefits and pleaded guilty to one felony count of workers' compensation fraud. Read more
Operators of Supermarket Floor Cleaning Company Arrested For Underreporting Payroll (CA) - Osvaldo Molina, Fortino Galeno, and Alicio Galeno, the owners and operators of Floor Care Systems, have been arrested for workers' compensation premium fraud, failure to pay taxes, tax evasion, and grand theft. The company, which cleaned floors for supermarkets, is alleged to have underreported its payroll by $5,000,000 in order reduce its workers' compensation insurance premiums by an estimated $782,000. Employees were also not paid overtime wages and were locked inside their work area. Read more
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