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Workers Compensation: When Fraud is Uncovered


We’ve highlighted workers compensation fraud and how it hurts us all before. The following are two examples of fraud uncovered.

RELATED: When Workers Comp Discounts Are Available

Workers Comp Fraud in TX

Gary Hunt worked as a sales coach for a plumbing company in Austin Texas. Recently, Hunt submitted a claim about how a work related injury rendered an inability to perform his job duties.

Though Hunt was no longer working for the plumbing company, he secured a job as a consultant for a HVAC company, enjoying illicit double dips by collecting workers comp benefits along with a salary for employment elsewhere.

The court handed over a Class A misdemeanor conviction, while sentencing Gary Hunt to a 1-year deferred adjudication. In addition, Hunt was ordered to recompense the insurance company for $8,192.


Workers Comp Fraud in CA

Enrique Vera  and his sister Gloria Vera operate a construction firm in California.

The pair have been accused of fraud involving a six million dollar insurance scam. 

The fraud charges consists of altering payroll statements so that they could pay less of a premium for workers comp, making false statements so as to dissuade injured employees from filing workers comp claims, and failure to report job-related injuries – all of which amounts to a minimum of $6 million losses to the state workers comp program.

Additionally, the pair have been charged with paying less than required to workers  by law.

Erique is accused of 4 felony counts of workers comp fraud and 3 felony counts of grand theft of labor while facing a maximum of fifteen years in jail.  Gloria is accused of 5 felony counts of workers comp fraud and 3 felony counts each of insurance fraud, while facing a maximum of nineteen years behind bars.

Sentencing is pending. 

 

For questions about Workers Compensation, contact the professionals at Prime Insurance.



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Summary: Prime Insurance spotlights two major cases where workers comp fraud was discovered.


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