Workers' Comp Fraud Blotter 1/8/2010 - Recent Arrests, Charges, Convictions & Investigations

Workers' Comp Fraud Blotter 1/8/2010 - Recent Arrests, Charges, Convictions & Investigations

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 8, 2010

FBI Investigating Whether Hedge Fund Execs Played Role in Insurance Fraud Scheme (NY) – The FBI is investigating the activities of two executives at Vicis Capital LLC, a New York hedge fund operator and biggest investor in a pair of small public companies that have been implicated in an insurance fraud scheme that revolves around falsified receivables for benefits covered by workers' compensation plans. Read more

Former Cleveland School Employee Accused of Workers’ Comp Scheme Faces New Accusations (OH) – Former Cleveland Schools Administrator Dan Burns, who has been accused of paying $20,819 to Corporate Intelligence Consultants for background checks and workers compensation investigations that were never provided, has now been accused of making over $658,000 worth of payments to a local company for equipment and services that were never delivered. Read more

Disbarred Attorney Pleads Guilty to Embezzlement of Workers’ Comp Funds (WV) – C. Patrick Carrick, a disbarred Morgantown attorney, has pleaded guilty to embezzlement from his clients by keeping money from workers’ comp claims instead of taking his fee and sending the remainder to the clients. Read more

Doctor Faces Charges for Alleged Fraud Hire (NY) – Dr. Vu Q. Tran of Rochester, NY, faces charges of insurance fraud for allegedly hiring one of his patients while treating the patient for a workers’ compensation disability. The investigation found that Dr. Tran allegedly hired patient Lisa Young as a Licensed Professional Nurse while she received workers’ compensation benefits from NYSIF. Read more

Two Insurance Agents Charged With Theft of $1M in Insurance Premiums (PA) – Kevin J. Pickell and his cousin Robert F. Pickell, partners in KDN Lanchester Corp., an insurance brokerage in Berks County, were arrested and charged with the theft of $1 million in insurance premiums from six Berks County School districts. The lawyer for Kevin Pickell says the school district’s workers’ compensation and liability insurance policies were in effect as soon as KDN received the premium payments. Read more

Fallsburg Woman Charged With Falsifying Paperwork on Her Work Status (NY) – Tina Dowe of Fallsburg was charged with offering a false instrument for filing in the first degree and fraudulent practice. Specifically, it is alleged that Dowe filed false information with the State Insurance Fund, saying she was not working when an investigation showed she was working at a local establishment as a cook. Read more

Accord Woman Charged With Perjury for Lying Under Oath at Comp Hearings (NY) – Alexis Muniz of Accord was arrested for receiving workers’ compensation and lying under oath at workers’ comp hearings regarding her work status. Muniz has been charged with perjury in the first degree, grand larceny in the third degree and committing a fraudulent practice. Read more