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 - October 13, 2011
Tree Trimming Business Owner Accused Of Filing Fraudulent Insurance Claim For Employee Killed By Wood Chipper (CA) - Jose Luis Guerrero, the owner of Jose Martinez Tree Service, Inc., is accused of under-reporting his payroll to the State Compensation Insurance Fund in excess of $2 million by illegally paying cash to his employees in order to reduce his workers' compensation insurance premiums. On Nov. 7, 2007, employee Gabriel Gonzalez was killed when his body accidently went through a wood chipper. Guerrero is accused of filing an insurance claim against his SCIF policy to collect benefits for Gonzalez's family without ever having paid an insurance premium on Gonzalez's wages. Read more
Roofer Ordered To Pay Fine For Workers' Comp Fraud (CA) - Anthony Perry, President of Perry Roofing Inc., has been sentenced to 5 years formal probation and ordered to pay a fine of $15,000.00 to the California Department of Insurance, as well as $670.00 in restitution to the State Compensation Insurance Fund. Investigators from the San Bernardino County District Attorney's Office had discovered that Perry was paying an employee cash and making misrepresentations to his insurance company regarding his true number of employees and the true amount of his payroll in order to obtain lower workers' compensation insurance premiums. Read more
New York Man Charged With Double-Dipping (NY) - Patrick Rosenzweig has been charged with workers' compensation fraud, making a false statement in workers' compensation insurance applications, offering a false instrument for filing, and grand larceny. Rosenzweig is alleged to have submitted a false workers' compensation claim while he was secretly working. Read more
Citations Issued For Numerous Labor Law Violations At Warehouse (CA) - Investigators for the California Labor Commissioner have uncovered a number of labor law violations at warehouses run by Schneider Logistics, where employees worked for Schneider as well as Premier Warehousing Ventures, LLC and Impact Logistics, Inc. Impact Logistics was issued a $499,000 citation for failure to provide itemized wage statements to employees and was issued a Notice to Discontinue labor law violations for failure to maintain time records. Premier Warehousing Ventures was issued a Notice to Discontinue reporting time violations and other violations. Employees at the warehouses were paid by piece rate to unload containers. State officials pointed out that in California, employers are required to provide basic protections for workers that include payment of at least minimum wage, overtime and workers compensation coverage. Read more
Mourning Wife Kept Cashing Dear Husband's Workers' Comp Checks For Ten Months After He Died (FL) - Geraldine Presley has been charged with scheming to defraud the Pinellas County Risk Management department by continuing to deposit her deceased husband's workers' compensation checks in her bank account. Presley's husband, Antone Ferreira, passed away in December of last year, and she claims that she thought she was receiving annuity checks that were to continue after his death. Read more
Another Roofing Company Owner Pleads Guilty to Defrauding Insurance Company of Workers' Compensation Funds (MA) - Thomas Leonard, the owner of TLC Exteriors, a roofing business, has pled guilty to charges that he misclassified his workers on insurance policies. During a four year period between May 2004 through May 2008, Leonard misclassified his workers as carpenters, instead of roofers, in order to avoid paying higher workers' compensation insurance premiums. Leonard told his insurance company that he had a carpentry business and that any roofing was subcontracted to other businesses. Read more
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