Workers' Comp Fraud Blotter (6/30/2011) – Florida Shell Company Owner Used Phony ID To Pay Undocumented Workers and Lower Workers’ Comp Costs

Workers' Comp Fraud Blotter (6/30/2011) – Florida Shell Company Owner Used Phony ID To Pay Undocumented Workers and Lower Workers’ Comp Costs

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 - June 30, 2011

Owner of Florida Shell Company Convicted of Elaborate Workers' Compensation Fraud Scheme and Illegal Check Cashing Operation (FL) - David Rodriguez Socarras has pled guilty to five charges, including application fraud and workers' compensation fraud, and been sentenced to prison for running a shell company to pay undocumented workers and avoid workers' compensation premiums. Socarras used a fraudulent Social Security card and birth certificate to obtain an ID, established a shell company with a minimal workers' compensation policy, and cashed 80 checks, for more than $2.9 million, at a Jacksonville check cashing store to pay groups of undocumented workers.   Read more

Fake Neck Injury Lands Woman In Prison (NY) - Kelly Woods has been sentenced to spend 1 to 3 years in state prison and ordered to pay $43,405 in restitution, based on false workers' compensation claims that she made concerning a neck injury on a construction job. Woods admitted that she lied by claiming that she was suffering from permanent fixed torticollis, a permanent flexion of her neck at a 90-degree angle, after video surveillance showed her moving her neck and head normally.   Read more

Owner of Staffing Companies Indicted for Workers' Compensation Fraud (MA) - The owner of three staffing companies, Dara Duong, has been indicted for allegedly underreporting and misrepresenting the payroll of his business operations in order to avoid paying approximately $110,000 in workers' compensation premiums. Duong was the owner of Middlesex Temporary Agency, Ankgor Staffing, Inc. and General Labor Services, which provided unskilled labor, such as factory workers, to several client companies.   Read more

Underground Economy Targeted in Two-Day Statewide Sweep and Sting Operation (CA) - The California Contractors State License Board teamed with other state and federal authorities to target the underground economy for two days of jobsite sweeps in five counties. The sweep operations and sting netted 116 legal actions against those engaged in unlicensed, unsafe, and uninsured home improvement and construction activities on 134 jobsites. The sweep found 21 contractors who failed to carry sufficient workers' compensation insurance.   Read more

Roofing Company Owner Pleads Guilty To Failing To Provide Workers' Compensation Insurance (VT) - Donald Bevins, who operated Twin City Roofing and Around the Clock Property Maintenance, has pled guilty to failing to maintain workers' compensation insurance. Bevins was operating for several months in 2010 without workers' compensation insurance and in violation of a Vermont Department of Labor Stop Work Order. During that time frame two of his employees were seriously injured while working.   Read more

Owner of Home Rehabilitation Firm Charged With Insurance Fraud (NY) - Christine Clendenning has been charged with falsifying business records, grand larceny, fraudulent practices, and workers compensation fraud, for providing fraudulent certificates claiming that she had workers' compensation insurance. Clendenning's firm, Christine Custom Design Inc., had a contract with the City of Rochester for home renovation work.   Read more

Public Works Contractor Sentenced To Probation and Restitution For Insurance Fraud (CA) - Monica Mui Ung, the owner and president of NBC General Contractor Corporation, has pled guilty to making intentional misrepresentations regarding her payroll and the job classifications of 70 employees in order to illegally save her firm a significant amount in workers' compensation premiums. The majority of the work the firm performed involved work on 27 public works projects.   Read more

Contractor Presented Forged Insurance Certificate After Employee Fell (SC) - Walter Sanders, who was doing business as B&B Masonry, has pled guilty to forgery and sentenced to probation. After one of his employees fell from scaffolding and fractured his pelvis, coccyx, both legs and left hip, Sanders provided a forged certificate of insurance to the general contractor for the work site.   Read more

Florida Man Sought For Identity Theft To Obtain Workers' Compensation Benefits (FL) - Florida authorities are looking for Ricardo Temix. Temix allegedly committed workers' compensation fraud by providing a fraudulent Social Security number as proof of identification for the purpose of obtaining employment and obtaining workers' compensation benefits. Temix received more than $12,500 in fraudulent benefits and medical expenses by using the Social Security number of a deceased victim.   Read more

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