Workers' Comp Fraud Blotter (6/26/2014) – Horseshoer Nailed By Feds For Workers’ Compensation Fraud

Workers' Comp Fraud Blotter (6/26/2014) – Horseshoer Nailed By Feds For Workers’ Compensation Fraud


Workers' Comp Fraud Blotter – June 26, 2014

Horseshoer Nailed By Feds For Workers’ Compensation Fraud (PA) – Herman Mokuau has been charged by information with one count of theft of government funds and one count of false statement or fraud to obtain federal employees’ compensation. Mokuau injured his left knee while working as a civilian employee of the Philadelphia Naval Shipyard and was awarded benefits. While receiving those benefits, though, he allegedly concealed from the government that he was working from 2004 to 2012 as a horseshoer or farrier. During this time, he even served as the president of the southern chapter of the Garden State Horseshoers Association.   Read more

Sealed Indictment Alleges Workers’ Compensation Fraud For Prescriptions Of Compounded Transdermal Cream (CA) – A grand jury sealed indictment is alleged to set forth charges against 15 persons, including Kareem Ahmed, the president and CEO of Landmark Medical Management, Dr. Daniel Capen, M.D., Dr. Andrew Jarminski, M.D., pharmacist Michael Rudolph, and Dr. Rahil Kahn, M.D. Ahmed is alleged to have hired pharmacists to produce compounded transdermal cream. He then paid kickbacks to physicians to prescribe the cream and conspired with them to file phony workers' compensation bills. Capen, Jarminski, Rudolph, and Kahn are alleged to have each received more than $1 million from Ahmed.   Read more

Unlicensed Contractors Charged With Workers’ Compensation Fraud Following Undercover Multi-Agency Sting (FL) – A three-day undercover operation at a manufactured home park, led by the Florida Department of Financial Services’ Division of Insurance Fraud and Bureau of Compliance in partnership with local law enforcement, has resulted in the arrest of 16 contractors for operating without workers’ compensation insurance. Those charged are Michael Lynn Burkett, Casey Thomas Morris, Charles Henry Duff, Daniel Thomas Richards, Richard Marziano, Brian Francis Marlow, Robert Bruce Dimenna, Jeffery Way Freed, Henry Willmore Delos Santos, Efrain Garcia, Danny Wayne Huddleston, Robert Franklin Vaughn, Kenneth Eugene Cromer, Jeffrey George Caridi, Damon Patrick Ginter, and Michael J. Connor.   Read more

Warrants Issued For Insurance Agent and Spouse Who Sold Phony Insurance Policies (GA) – Arrest warrants have been issued for the owners of the Dunn Right Insurance Agency, licensed insurance agent Cynthia Dunn and her husband, Ronald Dunn. They have been charged with insurance fraud, forgery, and identity fraud for selling workers’ compensation and general liability insurance policies to three businesses, pocketing the premiums, and creating fraudulent certificates of insurance that were given to their clients.   Read more

Plumber Arrested For Workers’ Compensation Fraud and Warranty Scam (CA) – Tim Shelley, the owner of Tim’s Plumbing, has been charged with workers’ compensation insurance fraud and grand theft. Shelley is alleged to have deliberately failed to obtain workers’ compensation insurance for his employees. When employees were injured, he discouraged them from claiming workers’ compensation benefits, and some severely injured workers were unable to afford medical treatment and suffered significant financial hardships. Shelley was also allegedly operating a warranty replacement scam. The scam involved removing warranty tags on water heaters installed for customers and then turning in a false warranty claim. Shelley was thus illegally able to receive a number of free replacement units from the manufacturer.   Read more

Painter Ordered To Pay Restitution For Double-Dipping In His Paint Cans While On Disability (RI) – James Casale has pled nolo contendere to obtaining money under false pretenses for collecting more than $10,000 in workers' compensation insurance benefits while he was employed. Between February 2007 and August 2007, Casale failed to report that he had returned to work for his painting company, James Casale Painting & Wallpapering Inc., while he was simultaneously receiving those benefits.   Read more

Owner Of Tax Service Failed To Obtain Workers’ Compensation Insurance For Employees While Collecting Benefits Himself (CT) – Maninder Arora has been charged with illegally collecting workers’ compensation benefits from one company while working for his own business and failing to provide workers’ compensation coverage for his own employees. Arora was receiving benefits for a work-related injury he reported suffering while employed by Peapod Home Delivery of the Stop & Shop Supermarkets. At the same time, though, he owned and was working at five Liberty Tax Services franchises, where he failed to provide workers’ compensation insurance coverage for his employees.   Read more

Co-Worker Received Suspended Sentence For Assisting Workers’ Compensation Fraud (MT) – Jeffery Russell has been given a two-year suspended sentence for helping Matthew Ailer stage an accident at work in order to collect workers’ compensation. Ailer promised to give Russell $20,000 to help create the fake injury involving a heavy piece of machinery.   Read more

Businessman Who Once Hobnobbed With National Politicians Now Facing Multiple Fraud Charges (CA) – David Lack, a building contractor who once socialized with national politicians like Ronald Reagan, George Bush, George W. Bush, Rudy Giuliani, and Michael Huffington, now faces charges of theft, bank fraud, tax fraud, workers’ compensation fraud, and operating without a contractor’s license.   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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