Workers' Comp Fraud Blotter (8/11/2011) – Police Officer Made a Mint Running His Memorabilia Business While On Disability

Workers' Comp Fraud Blotter (8/11/2011) – Police Officer Made a Mint Running His Memorabilia Business While On Disability

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 - August 11, 2011

Police Officer Made a Mint While On Disability (PA) - During a period of almost three years after he claimed he was injured while closing a gate at the Philadelphia Mint, Richard Rufo, a police officer at the Mint, collected $173,000 in federal workers' compensation benefits. At the same time, though, Rufo, who has now been charged with fraudulently collecting disability benefits, was operating a memorabilia business where he sold law enforcement items. His business had over one million dollars in gross sales and net profit of approximately $318,000.   Read more

Former Electrician Submitted Bogus Claims for Mileage, Toll, and Parking Expenses (PA) - Charles Ivry, a former  electrician for the Department of Defense, has been indicted on multiple counts of mail fraud and false or fraudulent statements regarding workers' compensation benefits in the United States District Court for the Eastern District of Pennsylvania. Ivry allegedly devised and intended to devise a scheme to defraud the Department of Labor and the Office of Workers Compensation Program and to obtain money and property by fraudulently claiming mileage, toll and parking reimbursements for pharmaceutical, physician and rehabilitation appointments in distances greater than those he actually traveled and for parking and toll costs he never incurred.   Read more

Restaurant Owner Sentenced to Probation for Workers' Compensation and Tax Fraud (OH) - John Bou-Sliman was sentenced to three years probation after agreeing to a plea bargain in which he pled guilty to failure to remit sales tax, attempted failure to remit sales tax, and failure to maintain workers' compensation coverage on his business. In exchange, the prosecution dismissed 20 charges, including those for insurance fraud and arson that were related to a fire that damaged his restaurant.   Read more

Doctor Testifies That Bodybuilder Firefighter Exaggerated His Pain and Ailments (MA) - A doctor who was selected by Albert Arroyo's lawyer to examine Arroyo testified in federal court that Arroyo seemed to have exaggerated his pain and made facial gestures that were out of proportion to his physical ailments. Only two months after Arroyo was allegedly injured when he fell down flight of stairs at a firehouse, he was videotaped while he was freestyle flexing to music.   Read more

Trucking Company Owner's Girlfriend Sentenced In Scheme to Obtain Prescription Narcotics (OH) - Tabitha Taylor, the girlfriend of convicted trucking company owner Jeff Davis, has been sentenced to a suspended prison sentence in a case related to their scheme to file false workers' compensation claims against his company's policy in order to obtain narcotics and medical care. The couple claimed Taylor sustained an injury on the job while working for Davis Trucking, although she had never been an employee. It was later revealed that her injury actually occurred as a result of a domestic dispute between Taylor and a prior boyfriend.   Read more

Man Cashed Both Check That He Requested Stop Payment On and Reissued Check (NJ) - Robert Ascolillo has been indicted on charges of grand larcency for cashing two checks for a single workers' compensation payment. He claimed that the original check for $10,455 from the insurance company was mailed to the wrong address, and he asked that the original check be stopped and a new check issued to him. He then cashed the original check before the stop payment order was issued, and then cashed the reissued check as well.   Read more

Doctor Sentenced For Lying About Employee's Disability and Inability To Work (VA) - Vu Q Tran, M.D., has been sentenced to one year conditional discharge and ordered to pay $18,000 in restitution to the New York State Insurance Fund. The sentence was imposed after Dr. Tran pleaded guilty to disorderly conduct in satisfaction of the workers' compensation fraud charges pending against him. The case involved the workers' compensation insurance claim of a former employee. Dr. Tran had reported that the employee was totally disabled and could not work. In fact, she was employed by Dr. Tran at the time.   Read more

Owner of Ceramics Store Operated Store While On Workers' Compensation (NY) - Linda Jo Fox has been sentenced to five years' probation and ordered to pay $10,045 in restitution to Ace Insurance Company as a result of her guilty plea to grand larceny. Fox began collecting workers' compensation benefits following a work-related injury. However, investigators for the insurance company obtained surveillance evidence showing Fox working at a local ceramic supply store that she owned.   Read more

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