Workers' Comp Fraud Blotter - Recent Arrests, Charges, Convictions, and Investigations (1/27/2011)

Workers' Comp Fraud Blotter - Recent Arrests, Charges, Convictions, and Investigations (1/27/2011)

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 27, 2011

Hair Care Business Owner Sentenced for Workers' Compensation Violations (PA) – Donna L. Redington, owner of the Maneline Hair Studio, has been placed on six months' probation and ordered to pay the costs of prosecution as well as $1,177 in restitution to the Pennsylvania Bureau of Workers' Compensation. Redington has been entered into the Accelerated Rehabilitative Disposition program for first-time offenders for failing to maintain workers' compensation coverage for employees.   Read more

Gas Station Cashier Allegedly Set Up Sham Company For Workers’ Compensation Insurance (FL) – Eduan Santiago-Rivera, who was working as a cashier at a gas station, has been arrested on charges that he created a sham construction company for the purpose of providing workers’ compensation insurance for other persons who were doing construction work. The insurance was not for work that he performed and the insurance policy had lapsed.   Read more

Contractor Given Probation For Failing To Maintain Workers’ Compensation Insurance (PA) – Michael J. Troutman, the owner of T&T Contracting, has been placed on two years' probation, ordered to pay the costs of prosecution, pay $14,604.11 in restitution to the Uninsured Employer Guaranty Fund, and perform 15 hours of community service. Troutman failed to maintain workers’ compensation coverage, but T&T Contracting is now in compliance with the Pennsylvania workers' compensation law.   Read more

Owner of Historic Lodge Faces Trial For Workers’ Compensation Crimes (CA) – Sanjiv Kakkar, the owner of the Brookdale Inn and Spa, which was built in 1890 and once hosted Marilyn Monroe when it was known as the Brookdale Lodge, is scheduled for trial in March on charges of fraud and making false claims. Kakkar is accused of persuading an employee to not file a worker’s compensation claim after a work injury, although Kakkar’s attorney claims that the injured man was not an employee.   Read more

Owner Of Closed Restaurant Guilty of Workers’ Compensation Violations (PA) – John L. Poole, the operator of the now closed Skyline Restaurant & Bar, has been placed on one year's probation and ordered to pay the costs of prosecution as well as $8,283.70 in restitution to the Uninsured Employers Guaranty Fund for failing to maintain workers’ compensation insurance coverage for the employees of the business.   Read more

Lawn Care Company Owner Fined For No Workers’ Compensation Insurance (PA) – Erich Anewalt, the owner of D&A Lawn & Landscape Services LLC has been fined $6,500 plus costs after pleading guilty to three misdemeanor charges for failing to maintain workers' compensation coverage for his employees.   Read more

Owner Of Closed Restaurant Pleads Guilty To Tax and Workers’ Compensation Charges (CA) – Richard Wun Ping Sang, the owner of the now closed Mallard’s restaurant, has pled guilty to failing to pay payroll taxes and failing to have worker’s compensation insurance. He was sentenced to jail for time already served on previous convictions arising from his business dealings.   Read more

Executive Of Professional Employer Organizations Arrested On Fraud Charges (TX) – Patrick G. Mire, who served in executive and management positions with several professional employer organizations, has been arrested on federal fraud and tax charges. Mire and his yet unidentified co-conspirators are charged with failing to remit to the IRS payroll taxes and failing to obtain workers’ compensation insurance for client firms that they collected taxes and insurance premiums from.   Read more

Snow Plow Operator Guilty Of Double-Dipping While Receiving Workers’ Compensation Benefits (NY) – Richard Bates has pled guilty to offering a false instrument for filing. He admitted that he was working in a snow plow business while he was receiving workers’ compensation benefits for an injury that he sustained on a previous job and failed to report his earnings from snow plowing.   Read more

Federal Court Sentencing Of Payroll Company Owner May Be Continued (NH) – The scheduled federal court sentencing of Scott Drohan, who operated Juskel Services, for failing to pay the payroll taxes and workers’ compensation insurance premiums of a client trucking company, may be continued while an unrelated case in state court is resolved. Drohan pled guilty to stealing $140,000 of taxes and insurance premiums paid by the trucking company.   Read more

Ohio Bureau of Workers’ Compensation Investigation Culminates in Indictment of Chiropractor (OH) – Chiropractor Bruce E. Holaday, the owner of the Back and Spine Center, has been indicted on workers’ compensation fraud and theft charges. It is alleged that Holaday unlawfully used the names and provider identification numbers of the chiropractors with whom he practiced after being permanently decertified as a BWC health care provider, prohibiting him from seeking and receiving reimbursement from BWC.   Read more

Construction Company Owner Arrested For Avoiding Workers' Compensation Premiums (FL) – David Rodriguez-Socarras, the owner of HMV Construction Incorporated, has been arrested for allegedly creating a "shell" company and fictitious name in order to cash nearly $3 million in payroll checks through a money service business to avoid workers' compensation premiums and payroll taxes.   Read more

Contractors Plead Not Guilty To Violating Contracting Laws in Natural Gas Explosion Neighborhood (CA) – Jason Pippin has pled not guilty to contracting without a license under a state of emergency and not carrying proper insurance, and William Warfield has pled not guilty to working without employee insurance in a neighborhood that suffered damages from a natural gas explosion and resulting fires. Both men have claimed that they worked for free to assist homeowners in the neighborhood.   Read more

Former City Employee and His Physician Charged With Insurance Fraud (CA) – Gonzalo Fierro and his physician, Andrew Giovannini, M.D., have been charged with multiple counts of insurance fraud. They allegedly submitted numerous false workers’ compensation insurance reports to the City and County of San Francisco and non-industrial insurance reports to CSAA and Minnesota Life Insurance companies, which resulted in fraudulent payments of benefits in excess of $200,000.   Read more