Workers' Comp Fraud Blotter (8/22/2013) – Facebook Photos Show Disabled Worker Was Able To Work Out Of State In His Repelling Gear

Workers' Comp Fraud Blotter (8/22/2013) – Facebook Photos Show Disabled Worker Was Able To Work Out Of State In His Repelling Gear


Workers' Comp Fraud Blotter – August 22, 2013

Facebook Photos Show Disabled Worker Was Able To Work Out Of State In His Repelling Gear (OH) – Michael Mallory has pled guilty to workers' compensation fraud after relocating and posting on Facebook photos of his work for an Arizona employer. Mallory relocated to Arizona after he was injured in Ohio and began collecting benefits. After receiving a tip that Mallory was doing construction work in Arizona while collecting benefits, investigators found that Mallory was working for Safety Compliance Services. They found photos of Mallory wearing repelling gear and doing repelling work on his Facebook page, and the company confirmed that Mallory was employed with them as a rescue technician.   Read more

Detective Who Once Punched a Fan Now Hit With Conviction For Lying About Assault On Himself (MD) - Anthony Fata, a homicide detective for the Baltimore Police Department, has been convicted by a jury of perjury, misconduct in office, and worker's compensation fraud. Fata claimed to have been attacked and shot by an unknown assailant in a parking garage, which became the basis for a workers' compensation claim that he filed. Fata was found to have made up the shooting in order to obtain worker's compensation benefits. Eleven years ago, Fata was caught on videotape punching a rowdy Preakness horse race fan.   Read more

Daughter Sentenced To Diversion For Fraud At Dad’s Companies (OH) – Sarah Barajas has entered a diversion program after investigators confirmed that she had falsified an application for workers' compensation insurance coverage. In January, 2011, her father, David Bane, the owner of the temporary employment agency Bane Specialty Services, canceled his workers’ compensation policy, indicating the business had ceased operation while owing unpaid insurance premiums of $116,677.12. But two months earlier, Sarah had opened a new policy for Bane and Associates, also a temporary employment agency. The application contained no information on the previous business. An investigation found that not only the location, employees, and services offered were the same for both businesses, but the clients were also the same. Sarah was subsequently indicted on charges of tampering with records.   Read more

Fraudulent Social Security Number Used For Fraudulent Workers’ Compensation Claim (FL) – Jose Munoz has been arrested for workers’ compensation fraud and using a false ID after evading capture for several months. Munoz's claim was filed in 2012 when he suffered an alleged work related injury and then following treatment, he refused to return to work. Munoz reported that he could not work or go outside due to light sensitivity. Surveillance efforts documented Munoz working for a roofing company while collecting workers’ compensation benefits. The investigation also revealed that he had used a social security number of a woman in California to file his claim.   Read more

Roofing Company Owners Misclassified Employees as Subcontractors (OH) – Michelle Scaggs and Frederick Diebert, dba Triple Star Roofing, have been found guilty of workers' compensation fraud for under reporting premiums in order to avoid paying workers' compensation insurance premiums. Investigators received an anonymous tip that Triple Star Roofing was operating with employees, but reporting that the business had no employees or payroll. Agents interviewed Triple Star Roofing workers who said they felt they were employees even though Triple Star classified them as subcontractors and issued them 1099 tax forms. Bank records were analyzed, and it was discovered that checks were issued to the same individuals on a weekly basis, with many of them indicating "payroll" in the memo section. In addition, two workers’ compensation claims were filed by injured workers of the company and not appealed by Diebert or Scaggs.   Read more

Double-Dipping Truck Driver Guilty Of Fraud (TX) – Michael Schmidt has been sentenced to one year of deferred adjudication and ordered to pay $2,649 in restitution to Texas Mutual Insurance Company as a result of his conviction for workers’ compensation fraud. Schmidt reported a job-related injury while working as a truck driver for E.L. Farmer and Company and claimed that he was unable to work as a result of the injury. But Texas Mutual uncovered evidence that Schmidt was working as a truck driver for another company while receiving income benefits for his alleged disability.   Read more

Cross Match Between Government Databases Reveals Disabled Worker Was Double-Dipping (OH) – Cecil Ball has pled guilty to theft for working while receiving workers’ compensation benefits. As a result of a computer database cross match, Ball was discovered to be working as a truck driver for KTS Transportation between July 2011 and January 2012, while he was also receiving temporary total disability benefits.   Read more

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.

For more information about LexisNexis products and solutions connect with us through our corporate site