Workers' Comp Fraud Blotter (4/3/2014) – Buffet Restaurant Manager Used Safe Houses To Hide Undocumented Employees Who Were Paid In Cash

Workers' Comp Fraud Blotter (4/3/2014) – Buffet Restaurant Manager Used Safe Houses To Hide Undocumented Employees Who Were Paid In Cash


Workers' Comp Fraud Blotter – April 3, 2014

Buffet Restaurant Manager Used Safe Houses To Hide Undocumented Employees Who Were Paid In Cash (ME) – Mei Juan Zhang, who managed the Grand Asian Buffet restaurant, part of a group of restaurants owned by her family across three states, has been sentenced to federal prison for harboring undocumented aliens for commercial advantage and private financial gain, money laundering conspiracy, and conspiracy to file false employer's quarterly federal tax returns. Part of her staff were undocumented aliens that she paid in cash, to avoid payroll taxes and workers’ compensation insurance. These employees worked twelve hour days, 6 or 7 days a week, and were hidden in a safe house, one of eleven such houses used by her family, and taken in company vans to and from the restaurant.   Read more

Roofing Contractor Used Phony Certificates of Insurance (GA) – William Garrett has been charged with insurance fraud and forgery for using fraudulent certificates of insurance. Garrett, who owns Winnersville Roofing and Advance Gutter System, is alleged to have presented the fraudulent certificates to a general contractor in order to hide the fact that he did not have workers’ compensation insurance for his employees.   Read more

Massage Parlors Face Fines For Workers’ Compensation and Labor Violations (CA) – After complaints by residents that some massage parlors in Azusa were possibly offering sexual services as well as massages, state and local authorities conducted administrative inspections of six massage parlors. As a result of the inspections, numerous citations were issued for violations of various Azusa municipal codes, along with workers compensation, insurance, or minimum wage violations.   Read more

Stop Work Order Shuts Down Deli After Numerous Labor Violations Found (CT) – The Connecticut Department of Labor has issued a Stop Work Order to J&B Deli Grocery, operated by John and Cheong Rhee. The deli was not paying minimum wage or overtime to employees, was paying the employees in cash without payroll records, and was not carrying workers’ compensation coverage. In order to reopen the deli, the owners will be required to show proof of workers’ compensation insurance coverage.   Read more

121 Phony Contractors Rounded Up in California Blitz (CA) – 121 individuals have arrested during the spring California Blitz conducted by the California Contractors State License Board’s Statewide Investigative Fraud Team (SWIFT) and local authorities. SWIFT investigators posed as homeowners seeking bids for home improvements such as painting, drywall, landscaping, decking, cabinets, flooring, fencing, masonry, concrete, and tree removal work. Many of the alleged illegal contractors were unlicensed, but advertising services on  Nineteen of the contractors were issued Stop Orders because they were also operating without workers’ compensation insurance coverage for their employees.   Read more

Tuna Tried To Reel In Some Big Ones With Sham Construction Company (FL) – Adalid Exequiel "Tuna" Ramos-Rodriguez has been charged with workers’ compensation fraud for creating a sham construction company that carried only the bare minimum of workers’ compensation insurance. He then, for a fee, allowed subcontractors who did not have workers’ compensation insurance to use his company and insurance as proof of insurance when they bid on construction projects.   Read more

Sewer Department Supervisor’s Drafting Work While Injured Did Not Include a Blueprint To Avoid Investigators (CT) – Alfred Gorenflo, a supervisor in the Stamford Water Pollution Control Bureau, has been charged with workers’ compensation fraud. Gorenflo reported suffering a work-related injury while inspecting a sewer main break and collected more than $100,000 in workers’ compensation benefits. But investigators allege that he misrepresented the material facts regarding his disability claim while receiving benefits and earned money drafting blueprints for a home improvement company while collecting benefits for supposedly being unable to work.   Read more

Fraud Plans Scrapped After He Sold 74 Tons Of Scrap While On Disability (OH) – Dale Richards has pled guilty to workers’ compensation fraud and has been ordered to pay $30,381.48 in restitution for unlawful benefits that he received. While he was injured and receiving temporary total disability benefits, Richards earning a living selling scrap metal. He sold 74 tons of scrap metal and also worked on construction and remodeling projects.   Read more

Wood Chip Company Owner’s Disability Fraud Ground To a Halt After Relationship With Stepson Fell Apart (WA) – Richard Stalkfleet, who owned Stalkfleet Farms, a company that collected wood shavings from lumber mills and distributed them to dairy farms for use in barns, will be heading to a federal prison for one year for unlawfully collecting state and federal disability benefits. Stalkfleet put the company in his stepson’s name in order to hide the profits while he collected disability benefits, claiming that he was unable to work and that his only daily activities consisted of eating, having coffee, playing with his dog, and doing a little housework. Investigators discovered that Stalkfleet was actually running the business after he had a falling out with his stepson and his stepson’s wife.   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.

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