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 - January 10, 2013
Disbarred Workers' Compensation Lawyer Pleads Guilty and May Be On His Way To Jail (GA) - Disbarred attorney Miles Lamar Gammage has pled guilty in the Northern District of Georgia to mail fraud for stealing $2.5 million in workers' compensation settlement funds from 50 of his clients. Gammage settled many of the cases without the knowledge of his clients and forged their signatures on the settlement checks so that he could use the funds to pay the expenses of his office and for his personal use. Read more
Former County Heavy Equipment Operator Arrested On Worker's Comp Fraud Warrant (CA) - Michael D. Maloney has been charged with allegedly filing a fraudulent workers' compensation claim. Maloney was employed by the County of Tulare Resource Management Agency as a heavy equipment operator. The total alleged loss is $25,184.66. Read more
Appeals Court Upholds Prison For Staffing Company President Who Created Shell Companies (IA) - The Eighth Circuit has upheld a sentence of 57 months in prison for Dinesh Sethi, the owner of DES Staffing Services, for his fraudulent scheme to avoid paying $778,940.00 in workers' compensation premiums to two insurers. Sethi directed the creation of two shell companies, Staffing Professionals and KDM Staffing, and transferred DES employees to those entities to avoid the larger workers' compensation premiums DES owed as a result of its accident and claims history. Sethi had challenged the district court's sophisticated means and leadership-role enhancements under the federal Sentencing Guidelines, the court's failure to vary downward, and the court's restitution award. Read more
Business Owner Ordered To Make Restitution For Working as HVAC Technician While On Disability (OH) - Charles Morris, Jr. has been ordered to pay restitution in the amount of $29.415.27 for illegally working while receiving workers' compensation benefits for a prior workplace injury. Morris, the owner/operator of Chuck's Heating and Cooling, was discovered to be working as an HVAC technician while he was receiving temporary total disability benefits. A review of his bank records identified numerous customers who confirmed they hired and paid Morris for HVAC work that he completed himself. Read more
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