Workers' Comp Fraud Blotter – September 5, 2013
Business Owner Stole His Customers’ Wine and Underreported His Payroll For Workers’ Compensation (CA) – George Osumi II has been convicted and sentenced to six years in state prison for stealing $2.7 million worth of wine from his customers’ storage lockers and underreporting his payroll for workers’ compensation premiums. Osumi created and operated ten businesses in which he underreported his workers’ compensation payroll by $3.5 million, thus reducing his workers’ compensation premiums by $814,000. One of those businesses was Legend Cellars, Inc., where customers stored their wine in storage lockers at a controlled temperature. On three occasions, Osumi broke into the private storage lockers of three different customers and stole their wine that had a total estimated value of $2.7 million. Osumi replaced the bottles of wine he stole with much cheaper brands. Read more
Working As A Drug Dealer Was Double-Dipping (NY) – Juan Guzman has been charged with insurance fraud for working while he was collecting workers'’ compensation benefits. Guzman was charged and convicted of felony drug sales, and it is alleged that the drug dealing showed that he was able to work. Read more
Injured Worker Collected Disability Benefits While Operating Daycare Out Of Her Home (MA) – Donna Bricault has pled guilty to perjury and fraudulently collecting more than $5,000 in workers’ compensation benefits. Bricault began receiving workers’ compensation benefits following an injury that she sustained at her job with Laboratory Corporation of America. Although she submitted reports and stated under oath that she was not receiving any income, she was operating a home daycare business, Lil' Monkey Ranch Childcare, while collecting benefits. Read more
Doctors and Postal Employees Indicted in Workers’ Compensation Fraud Scheme (PR) – Two physicians, Luis Faura-Clavell and Alfonso Madrid-Guzmán, and ten current or former employees of the United States Postal Service, Bernardo Brito-Franco, Rodolfo Vázquez-Soto, Félix Ortiz-Vázquez, Miguel Plaza-Nieves, Wilma T. Fontán, Moisés Rivera-Aponte, Samuel Badillo-Muñiz, Ricardo Rivera-Ortiz, Rafael Espinet-García, and Lydia Rivera-Rodríguez, have been charged with federal workers’ compensation fraud. The two physicians are alleged to have diagnosed and prepared fraudulent medical reports, for which they charged fees ranging up to $1,650, so that the postal employees could illegally collect workers’ compensation 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