5 Charged in Alleged $100 Million Workers’ Comp Scam

April 23, 2007

  • April 23, 2007 at 9:36 am
    Mjolnir says:
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    I\’m anxiously awaiting all the posters who continually attack the insurers over workers comp claims.

    There have been a lot of posts recently about how companies deny claims and people are left destitute.

    So… let\’s hear it.

  • April 23, 2007 at 11:48 am
    Jeff says:
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    mjolnir,
    I\’m not sure I\’m following what you are saying here. Are you trying to say that maybe work comp claims that have been denied are because the clmt didn\’t have insurance but thought they did? Or are you saying it\’s not just the insurance companies that are contributing to the problem of people losing everything they have trying to pay med bills without coverage?

    I guess I\’m missing your point, could you please clarify for me?

    Thanks.

  • April 23, 2007 at 12:31 pm
    Ratemaker says:
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    Every time there is an article on the site about WC premiums rising or fraudulent WC claims, there is a wave of posts about how the WC insurance carriers are corrupt and that the whole system needs to be scrapped. Mjolnir has just predicted the incoming wave of posts…

  • April 23, 2007 at 1:45 am
    Reagan says:
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    It\’s the insurance companies fault. Especially the one you work for.

  • April 23, 2007 at 2:16 am
    Jeff says:
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    Ratemaker,

    Fair enough, but I guess I just don\’t see how the two relate since one is a carrier denying a claim when coverage is there and the other is an issue with people not having coverage at all.

    It just seems awfully combative to make a statement like this when not only no one has made that kind of comment, and also that one has nothing to do with the other.

  • April 23, 2007 at 2:30 am
    media mogul says:
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    This story is very poorly reported by IJ because it does not specify the mechanisms of fraud and deceit used in this case.

    Employee leasing firms are often Ponzi schemes–assuming huge liabilities/ deductibles/ SIRs, rating plan debits, etc. on group health and workers compensation/employer\’s liability, not to mention for policies that supposedly cover their special liabilities as co-employer, etc. I won\’t have anything to do with them. I\’ve been in meetings in the past with leasing co. financial people and watched them try to deny or otherwise ignore or sweep under the carpet such vital issues as claims development and IBNR–trying to recruit others into lying to proppsective insurers as they lied to their bankers. Unsavory–to say the least.

    If things go ok, they survive and some prosper to become model citizens. Too often they end like this. These people merely seem to have gotten a head start on removing assets from the company–perhaps it was their intention from the start–the facts should come out in prosecution.

    More effective regulation is certainly needed–otherwise this is just another \”success\” story for the \”free\” market. Perhaps some liabilities will be uncovered in litigation that will lead to some recovery for the victims–perhaps some unwise insurers are paying WC claims during the time they (may have) hsd real WC coverage–otherwise, it\’s once again average citizen taxpapyers having to pay up for damage done by yet another set of heroic entrepreneurs, such as those with Enron….bet the local newspaper society columns thought that these people were so great…

    Note to employers: Don\’t use less than stellar and established employee leasing companies in an atemptget around an uninsurable group or bad workers compensation rcord. Man up, or get out.

  • April 23, 2007 at 2:50 am
    Kathy H says:
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    How do you know it is the ICF? It isn\’t.
    IT IS THE PEO\’S FAULT. They provided Certificates of Insurance. They are the ones who WEEKLY, take monies from a small business, THEY CLAIM TO BE HR PROVIDERS. Contract states: We will pay all of your state, federal taxes. We will also provide you with WC INSURANCE. Now who is lying? They took the payroll each week allright – THEY DIDN\’T FORWARD MONIES TO THE PROPER STATE AND FEDERAL GOVERMENT, THEY DID NOT FORWARD WC PAYMENTS TO THE INSURANCE CARRIER.

    What don\’t you understand? DESTITUTE? I\’ll give you destitute.

    We will be there to testify against the PEO. FBI has called.

    WE ARE DESTITUTE, BANKRUPT, LOSS OF 3 VEHICLES, LOSS OF HOUSE OF 27 YEARS, LOSS OF 3 CHILDREN, SCATTERED, unable tor eturn to work due to brain surgery.

    GIVE ME A BREAK. It is the PEO\’S – not the insurance companies.

  • April 23, 2007 at 2:54 am
    Kathy H says:
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    You are partially right. The insurance carrier denied the claim because the PEO that the small businessman PAID TO THE PEO did not forward the monies to the proper authorities. The insurance companies. That\’s why they denied the claims. They were not paid. The Cura Group put Union American into bankrtupcy for NON-PAY. That\’s it in a nutshell.

  • April 23, 2007 at 3:21 am
    Mjolnir says:
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    I was being sarcastic, and the poster above you has it right.

    I see a large number of posts on this site about how insurance companies screw their insureds, and often times there are wild claims about how people are being bankrupted and forced to live in pain.

    I\’m not denying it happens, I\’m just tired of hearing anecdotal stories about it.

    I\’m tired of it because there is very little comment when stories about the flipside show up.

    The posters here generally ignore the stories about agent fraud and insurance scams, and that bugs me.

    It\’s very easy to attack a large company and say \”gimmee mah monies\”, but when there is a lack of balancing posts about how unethical it is to cheat the companies I begin to question the motives and facts of the \”predominant\” viewpoint.

    I wasn\’t predicting a wave od posts, merely pointing out the one-sided nature of some of the posting here.

  • April 23, 2007 at 3:28 am
    Jewel says:
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    Mjolnir-

    I understood your post and the sad reality of it as well.

    It is funny how people never seem to post when the shoe is on the other foot, huh? I guess it is more fun to have something to complain about or stir up controversy over…

    I seriously think some people aren\’t happy unless they are complaining… I am sure you know people of that nature.

    P.S. I predicted the same thing on another post (about the State Farm e-mails) and I think there are about 150 or more replies now…



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