Workers' Comp Fraud Blotter (7/21/2011) – Lake Erie Jolly Roger Restaurant Company Owner Lets Workers’ Compensation Coverage Lapse

Workers' Comp Fraud Blotter (7/21/2011) – Lake Erie Jolly Roger Restaurant Company Owner Lets Workers’ Compensation Coverage Lapse

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 - July 21, 2011

Restaurant Owner Failed To Maintain Workers' Compensation Coverage (OH) - John Bou-Sliman has pled guilty and is awaiting sentencing on one count of workers' compensation fraud for failing to make premium payments and maintain coverage for his restaurant business, The Jolly Roger, Inc. His workers' compensation policy lapsed after his premium check bounced. He promised to take the necessary steps to make the payment and have his policy reinstated, but failed to do so.   Read more

Probation Ordered For Lying About Return To Work (NY) - Dale A. Johnson has been ordered to make restitution, pay court costs, and serve three years on probation after her plea of guilty to attempted workers' compensation fraud. During a three year period, Johnson submitted forms to the state insurance fund in which she falsely stated that she had not returned to work.   Read more

Woman Placed On Probation For Collecting Disability While Working At Nursing Home (OH) - Sharlyn Adams has pled guilty to workers' compensation fraud for working while receiving benefits. Adams had returned to work at a nursing home while receiving temporary total disability benefits for performing the same type of work she was performing at the time of her industrial injury. Adams was sentenced to a suspended 180 days in jail and was placed on probation for five years if she makes restitution.   Read more

Police Department Civilian Employee Fakes Robbery To Create Workers' Compensation Disability (IL) - Gary Amato, who managed the front desk of a village police department and had worked for the village for 30 years, is accused of falsely reporting that he was attacked and robbed by three men wearing bandanas when he was taking a $44,000 deposit for the village to a bank. He claimed that he was pepper-sprayed and stabbed in the arm. Prosecutors say that Amato faked the robbery in order to steal the $4,000 of cash in the bank deposit and to set up a workers' compensation disability claim.   Read more

Boss Failed To Provide Coverage For Employees Working With Sewers and Septic Tanks (OH) - William Burchfield, the owner of Elite Sewer and Septic, has been sentenced to probation and ordered to make restitution for workers' compensation fraud for operating without coverage. Burchfield allowed his policy to lapse and failed to have it reinstated even after attempts were made to assist him in returning to compliance.   Read more

Attorney's Malicious Prosecution Lawsuit Against Prosecutor Dismissed For Failure To Appear (OK) - A lawsuit filed by attorney Fred Schraeder against assistant state attorney general Tommy Humphries and an investigator has been dismissed because Schraeder failed to appear for a scheduling conference. Schraeder is facing criminal charges for racketeering and conspiracy, embezzlement, uttering a forged instrument, and workers compensation fraud.   Read more

Man Sought Narcotics From Multiple Physicians (OH) - James Goloversic has pled guilty to workers' compensation fraud and two counts of deception to obtain a dangerous drug for using multiple doctors and multiple pharmacies to obtain narcotics. Goloversic was obtaining prescriptions from physicians who were not aware that he was seeking narcotics from other physicians, and he utilized multiple pharmacies in order to conceal his deception.   Read more

Owners Of Insulation Companies Cited For Misclassifying Employees As Independent Contractors (MA) - Alexander Shlepakov and Tatiana Shlepakov, a husband and wife who each own an insulation company, have been cited for more than $58,000 in restitution and fines for failing to pay the prevailing wage, misclassifying workers as independent contractors, and record keeping violations. Seven employees at the husband's company and two employees at the wife's company were misclassified in violation of the Massachusetts Employee Misclassification Law.   Read more

Pizza Shop Owner Did Not Pay the Dough For Workers' Compensation Coverage (OH) - James Hale, the owner of Jimmy's Pizza, was convicted of operating his business without a workers' compensation policy. Hale failed to obtain a policy even after he was advised of his obligation to do so.   Read more

House Cleaning Babysitter Was Collecting Total Temporary Disability (OH) - April Hupp has been placed on probation and ordered to make restitution for workers' compensation fraud for working while receiving benefits. Hupp was employed as a house cleaner and babysitter while receiving temporary total disability benefits.   Read more

Owner of Three Staffing Companies Indicted for Workers' Compensation Fraud (MA) - Dara Duong, the owner of Middlesex Temporary Agency, Ankgor Staffing, and General Labor Services, has been charged with underreporting the size and scope of his business operations in order to avoid paying approximately $110,000 in workers' compensation premiums. All three companies provided unskilled labor, such as factory workers, to several client companies. Authorities allege that from 2006 through 2008, Duong intentionally underreported his companies' payroll, the total number of employees, and the number of clients his employees worked for.  Duong also allegedly misrepresented job classifications as part of a scheme to avoid paying higher workers' compensation premiums to two insurance companies.   Read more

Man Sought Narcotics For False Workers' Compensation Claims (OH) - Bradford Pirigyi pleaded guilty to four counts of deception to obtain dangerous drugs. Pirigyi filed a claim against an employer that the Ohio Bureau of Workers' Compensation was not able to locate and the Bureau received a request from a doctor for approval to conduct an MRI for an injury unrelated to a Pirigyi's allowed claim. Pirigyi sought treatment at several different hospitals and doctor's offices, and he attempted to file workers' compensation claims against businesses that did not exist in order to obtain prescription narcotics.   Read more

Former Owners Of Temporary Employment Agency Convicted Of Running Massive Payroll Fraud Scheme (MA) - Michael Powers and John Mahan, the former owners of Commonwealth Temporary Services, have been convicted of paying more than $25 million in unreported cash to their employees as part of a conspiracy to avoid paying $7 million in taxes and hundreds of thousands dollars in workers compensation insurance premiums. Commonwealth Temporary Services supplied hundreds of temporary laborers to businesses throughout Eastern Massachusetts, and Powers and Mahan lied to both the IRS and their insurers about the size of their payroll and paid the majority of their employees in cash to make their fraud more difficult to detect.   Read more

Buckeye Lake Man Double-Dipped (OH) - Jeffrey D. Volz entered a guilty plea to one count of workers' compensation fraud for working while receiving benefits. Volz was employed by Teleperformance, Acloche and Work Force Network while he was also receiving temporary total disability benefits. Volz knowingly concealed his return to work so that he would continue to receive those benefits.   Read more

For more information about LexisNexis products and solutions connect with us through our corporate site.