B R E A K I N G N E W S !
On March 18, 1997, two attorneys from a prominent Worcester law
firm were indicted on 40 counts of insurance fraud-related charges.
Five former clients were also indicted on this date.
| Convictions | 188 |
| Individuals Indicted | 158 |
| Complaints Issued | 220 |
| Cases Referred for Prosecution | 359 |
Only five years ago, Bay State drivers paid among the highest auto insurance rates in the country, and our businesses faced such staggering workers' compensation costs that many closed, downsized or relocated to other states. Fraud became the lightning rod for all that was wrong, or was perceived to be wrong, with the system. Why not when insurance fraud had become so pervasive that it was the nation's second-largest economic crime after tax evasion!
Eventually, significant reform packages emerged in the Massachusetts Legislature in an attempt to put the brakes on rising costs and meet public and corporate demands for a solution. From that debate emerged a model fraud-fighting partnership between law enforcement and the insurance industry that has stopped the spiraling rate increases and returned substantial savings to Massachusetts families and businesses struggling to make ends meet.
The key to this welcome relief is a radical change in the culture of acceptance of insurance fraud and its replacement with a strong zero tolerance message. The Insurance Fraud Bureau of Massachusetts (IFB), created by the Legislature in 1990, is now the primary vehicle, working with traditional federal state law enforcement officials like the Attorney General's Office, for the prevention, detection and investigation of insurance fraud in Massachusetts. The IFB not only faces the daunting task of documenting often complex white collar crimes, but also educating the public about how the cost of fraud drives up the price of everyday living for everyone.
What we know as a fact is that insurers' costs due to fraudulent claims fall as the probability of arrests and convictions rises. Attorney General Scott Harshbarger is committed to vigorously prosecuting insurance fraud violations referred to our office by the IFB. Thus, since 1992, Assistant Attorneys General assigned to the Insurance Fraud Division of the Business and Labor Protection Bureau have initiated criminal actions against more than 350 separate individuals on more than 2,000 fraud counts. To date, more than 350 individuals have been the subject of criminal court actions, and more than 180 of them have been convicted on fraud charges to date. The combined efforts of all
prosecutions has resulted in nearly $500,000 in fines, penalties and court costs and, defendants have been ordered to return more than $6.5 million in restitution to the insurance companies victimized by this supposedly "victimless" crime.
When we launched this partnership five years ago, we knew many obstacles lay ahead. Through education of the general public, insurance industry, law enforcement, the judiciary and the media, we have shown that we can make a difference. Since 1994, there has been more than a ten percent decline in auto insurance rates, returning millions of dollars in disposable income to Massachusetts consumers. Three straight years of double digit decreases in workers' compensation rates have saved businesses hundreds of millions of dollars, improving our overall economic climate and our competitive edge with other states.
Fighting fraud is not a cure for all that drives up the cost of living or the cost of doing business, but it is a key component to bringing those costs under control. The results not only speak volumes about what can be done when we work together in partnership, but also provide an intriguing model for a cooperative and comprehensive public-private initiative to address other issues of economic security in Massachusetts.
Stuart T. Rossman
Chief, Business & Labor Protection Bureau
Massachusetts Attorney General's Office
"Missing Pearls Never Lost" Case Update
ATTLEBORO- A pearl necklace valued at $600 and reported
lost by an Attleboro woman was found to be in the possession of
her ex-husband. The subject was in the process of a divorce when
she filed the claim with Pawtucket Mutual Insurance Company.
The husband, while changing his address for insurance purposes,
became aware of the loss report filed by his wife and notified
the insurance carrier that he was in possession of the pearl necklace.
An Attleboro woman pled to sufficient facts in Wrentham District
Court on January 14, 1997. Her case was continued without a finding
for one year. She was ordered to pay $370 in restitution and
court costs. Assistant Attorney General Sean J. Kealy prosecuted
the case.
Big Fish Story
FALL RIVER- A subject claimed that the salt water pump
in his fish tank allegedly malfunctioned resulting in considerable
property damage to his home. When attempting to subrogate the
claim against the manufacturer of the water pump, Worcester Insurance
Company discovered that the manufacturer had already paid the
subject for a prior similar property claim through Merchants and
Businessmen's Mutual Insurance Company. Receipts submitted in
support of the two claims were allegedly falsified.
On October 17, 1996 a complaint was issued against a subject
in Fall River District Court on three counts of forgery and two
counts each of insurance fraud and larceny. Assistant Attorney
General Darlene A. Luccio Jordan is prosecuting the case.
Two Worcester Attorneys and Six Former Clients Indicted on
84 Counts of Alleged Insurance Fraud
WORCESTER- Two Worcester attorneys, partners in one of
the largest workers' compensation law firms in the state, are
accused of acquiring over $70,000 in legal fees by conspiring
in insurance fraud schemes that resulted in more than $310,000
worth of insurance payments for at least six clients. The indictments
allege that the attorneys oversaw fraudulent schemes which included
the use of false identities and Social Security numbers. The
attorneys also allegedly represented clients as totally disabled
but yet concurrently employed these clients at the law firm.
The case first made headlines in May 1996 when state police raided
three separate locations of the law firm. After being denied
entrance by an employee to one of the Worcester offices, state
police smashed the front door of the law office in their attempt
to serve a search warrant. On March 18, 1997, a Worcester Special
Grand Jury returned indictments on two attorneys in the firm and
five former clients on a total of 82 counts of insurance fraud-related
charges. A sixth former client was indicted on February 27, 1997
on two charges.
The investigation has resulted in:
Insurance companies affected in these cases include Aetna, Wausau,
Empire Mutual, Cigna, St. Paul, Minnesota Mutual Life, John Hancock,
Sentry, Arbella Mutual and ITT Hartford Insurance Companies.
The indictments are a result of a joint investigation by Attorney
General Scott Harshbarger's Office, the Massachusetts State Police
and the IFB. Assistant Attorneys General John L. Ciardi, Michael
C. Cullen and David R. Marks are handling the prosecution and
continuing investigation. Other federal and state agencies assisted
during the investigation including the U.S. Department of Justice,
the Immigration and Naturalization Service, the Social Security
Administration Office of the Inspector General, the Federal Bureau
of Investigation, the Massachusetts Board of Bar Overseers, the
Massachusetts Department of Revenue, the Medford Police Department
and the Office of the New Hampshire Attorney General.
Two Former Insurance Agents Charged in Separate Cases
EAST BOSTON- An East Boston woman, formerly a Lynn insurance
agent, allegedly represented herself as a Metropolitan Insurance
Company insurance agent and accepted $3,750 in premiums when she
was not authorized to write policies or accept money on the carrier's
behalf. She also allegedly used a phony Metropolitan stamp and
forged the signature of an authorized agent in order to complete
applications for motor vehicle registrations.
A complaint was issued in Lynn District Court against a former
insurance agent on eight counts of larceny, six counts of forgery
and six counts of falsifying a certificate of registration. Assistant
Attorney General Sean J. Kealy is prosecuting the case.
Attorney General Scott Harshbarger stated, "These indictments
are part of an ongoing investigation and are the first fruits
of a five-year probe into allegations of insurance fraud in Worcester
County. Systemic fraud of the kind alleged in these indictments
is a hidden tax that increases the costs of doing business and
the cost of living in Massachusetts. There is no such thing as
just bilking the system. We all pay."
BROCKTON- A former insurance agent and joint owner of a
Brockton insurance agency accepted more than $15,000 in downpayments
for insurance coverage from clients and neglected to forward these
payments to the respective carriers. More than two dozen customers
thought they had insurance coverage obtained through the agent.
Customers believed they were securing automobile insurance from
Liberty Mutual or Safety Insurance Companies, medical malpractice
insurance from the Joint Underwriting Association or general liability
insurance from the U.S. Liability Insurance Company.
Adele Doucette, a former Brockton insurance agent, pled
guilty to 25 counts of insurance fraud-related charges in Plymouth
Superior Court on March 27, 1997. She was sentenced to two years
in the House of Correction, suspended with probation, and ordered
to pay $10,000 restitution and to perform 100 hours of community
service. Assistant Attorney General David R. Marks prosecuted
the case.
Insurance Fraud is Big Business
WORCESTER- In several separate incidents, two Worcester
residents allegedly defrauded insurance carriers by reporting
fraudulent automobile and workers' compensation insurance claims
and submitting false lost wage documentation in support of those
claims. Carriers affected include Hanover, Commerce, Liberty
Mutual, American Transportation, CNA, Travelers and Safety Insurance
Companies.
Complaints were issued against two subjects on a total of 18
counts of insurance fraud-related charges in Worcester District
Court on February 19, 1997. One man was charged with two counts
of motor vehicle insurance fraud, three counts of larceny, one
count of attempted larceny, two counts of conspiracy and one count
of forgery. The other subject was charged with two counts of
motor vehicle insurance fraud, three counts of larceny, one count
of attempted larceny and two counts of conspiracy. Assistant
Attorney General Sean J. Kealy is prosecuting the case.
Phantom Dental Patient
LEOMINSTER- A Leominster woman received dental insurance
coverage for her and her family through her employer. She submitted,
on three separate occasions, dental forms, allegedly signed by
the dentist providing the services, indicating the dental services
provided and associated charges. Dental claim forms submitted
to State Mutual Life for reimbursement were for payments of $169,
$833 and $1,500. The dentists in the three situations deny treating
the patient indicated on the form or having a patient by that
name.
A subject was arraigned on January 24, 1997 in Leominster District
Court on three counts of insurance fraud and two counts of larceny.
The case will be prosecuted by Assistant Attorney General Erin
K. Olson.
Barn Collapses With a Little Help
WOBURN- The owner/operator of a Somerville tow company
alleged that the roof of his barn collapsed and heavily damaged
his 1989 Ford F350 tow truck. He received $9,863 for damages
to the truck from National Grange Insurance Company. Investigation
and witness testimony revealed that the damage to the tow truck
was deliberately inflicted when a cross beam section of the barn
roof was pulled down with the boom of another tow truck. A consulting
engineer inspected the barn structure and determined that the
collapse could only have occurred by an intentional act.
A Woburn man, the owner/operator of a tow company, was indicted
on charges of insurance fraud, larceny and malicious damage of
real property on December 18, 1996 in Middlesex Superior Court.
Assistant Attorney General Sarah Hartry is handling the case.
"What's A Businessman to Do?" Case Update
GREENFIELD- The owner of several Greenfield businesses,
including a realty office, rental property and a tavern, reported
the theft of about $6,000 in bar receipts. The money had been
placed in a filing cabinet in his realty office which is located
above the tavern. The subject reported the theft of the bar receipts
to police. However, when he learned that he had no insurance
coverage for this type of loss on his tavern insurance policy,
he claimed to St. Paul Marine and Fire Insurance Company the stolen
money was receipts from tenants on rental property.
Mark S. Donoghue admitted to sufficient facts on a charge
of insurance fraud. He was ordered to pay $9,880 in restitution
and placed on one year probation. He was also ordered to speak
to a local Chamber of Commerce about the unlawfulness of lying
to an insurance company under any circumstance. The case was
prosecuted by Assistant Attorney General Brian P. Burke.
Mom Always Said No Playing Basketball in the House!
QUINCY- A subject claimed to Hanover Insurance Company
that he sustained an ankle injury when he allegedly slipped and
fell in some water on the floor of the laundry room of his apartment
building. It is alleged, however, that the actual injury occurred
while the subject was playing basketball earlier that evening
with two of his cousins. The subject and his wife allegedly staged
the slip and fall in the laundry room in order to falsely collect
on a claim against the apartment owners.
Complaints were issued against a husband and wife on charges
of insurance fraud, attempted larceny and conspiracy in Quincy
District Court on December 19, 1996. The prosecutor is Assistant
Attorney General Sean J. Kealy.
"Stolen Vehicle Shipped to Nigeria" Case Update
BOSTON- A Boston man shipped his 1987 Volkswagen van to
Lagos, Nigeria and then reported the vehicle stolen to Boston
police and National Grange Mutual Insurance Company. A Bill of
Lading bearing the vehicle's VIN was secured when the National
Insurance Crime Bureau (NICB) and Customs shipping records were
cross-matched.
Osmor Bello pled guilty to insurance fraud, attempted
larceny, concealing a motor vehicle to defraud an insurer and
filing a false police report in West Roxbury District Court on
January 30, 1997. He was sentenced to one year in the House of
Correction, suspended, and ordered to pay a $2,500 fine and to
perform 100 hours of community service. Assistant Attorneys General
Sean J. Kealy and Brian P. Burke prosecuted the case. The case
was investigated by Sergeant Detective Kenneth Lamb of the Boston
Police Department's Auto Theft Strike Force and Harry Markle of
NICB.
"Stolen Vehicle Located in Virginia" Case Update
REVERE- A Revere man reported to Commercial Union Insurance
Company and to police the alleged theft of his vehicle from the
Burlington Mall. He was paid $10,650 for his loss. It was discovered,
however, that the subject and his sister had been traveling in
Virginia when the vehicle caught fire and he had it towed to a
local garage. Virginia State Police ran a vehicle check on the
vehicle and discovered it had been reported stolen in Massachusetts.
Quinton Williams and Mary Ward pled guilty to
motor vehicle insurance fraud, larceny, conspiracy and perjury
charges in Chelsea District Court on March 11, 1997. They were
each sentenced to three years probation and ordered to pay $12,830
restitution. The case was prosecuted by Assistant Attorney General
Sean J. Kealy.
"Oh, No! Not Again!" Case Update
BELMONT- A 1983 Porsche 928 was involved in three separate
motor vehicle accidents. In each incident, the subject reported
that another vehicle backed into the Porsche causing front end
damage. He collected more than $6,800 in damages from the accidents.
Photographs and appraisals from the carriers, John Hancock, Metropolitan
Property & Casualty and Cigna Property & Casualty, show
identical damage inflicted upon the vehicle.
Nicholas Karellas pled guilty to two counts each of
motor vehicle insurance fraud, larceny and conspiracy in Middlesex
Superior Court on January 2, 1997. He was sentenced to 2 1/2
years in the House of Correction, six months to be served on an
electronic bracelet and the balance suspended. He was also ordered
to pay $5,000 in court fines, to perform 50 hours of community
service and to surrender his passport. Dimitrios Papadogianis
previously pled guilty to his involvement in the conspiracy.
He was sentenced to six months in the House of Correction, suspended,
and fined $3,000. The case was prosecuted by Assistant Attorney
General Jennifer Renna Ferreira.
"Insurance Fraud Going to the Dogs" Case Update
LANESBORO- Two men staged several automobile accidents.
One subject, the owner of a small gift shop specializing in dog-related
items, filed claims for the damages of statues, figurines, prints
and other items he had been transporting in his van at the time
of each accident. Both subjects filed bodily injury claims and,
in total, collected over $100,000 in contents/property and bodily
injury payments from John Hancock and MassWest Insurance Companies.
On December 6, 1996 in Berkshire Superior Court, Stephen
Parzick pled guilty to four counts of insurance fraud and
one count each of larceny, attempted larceny and conspiracy.
Parzick admitted that he and his nephew staged the automobile
accidents. He was fined $13,700 and ordered to pay $13,704 restitution.
The case against his nephew was placed on file. Assistant Attorney
General Rosemary Tarantino prosecuted the case.
I Had to Make The Trip Worth My Time
SPRINGFIELD- A Springfield man was involved in a motor
vehicle accident and filed a claim with Commerce Insurance Company
stating that he had two passengers in his vehicle at the time
of the accident. Both passengers collected on personal injury
claims allegedly sustained in the accident. The driver and one
of the passengers eventually declared in recorded statements that
the second reported passenger was never actually in the vehicle
but came by afterwards to pick them up. The employer of this
"jump-in" passenger also confirmed that he was at work
at the time of the accident and left afterwards to pick up the
driver at the accident scene.
Ted Ramdass, the driver of the vehicle, admitted to
sufficient facts. He was placed on probation and ordered to perform
40 hours of community service. Kendall Richardson was found
guilty of insurance fraud and attempted larceny. He was sentenced
to one year in the House of Correction, suspended, with probation
and ordered to perform 40 hours of community service. AAGs Amy
Sharff and John Woodruff prosecuted the case in Springfield District
Court on December 16, 1996.
Let's Play Make Believe
NEW BEDFORD- A subject, using an alias name, submitted
a claim to Arbella Mutual Insurance Company relating to a staged
accident. He claimed to be injured and received medical treatment
at a hospital and with various medical professionals. He also
submitted a fraudulent employment verification form, using the
alias name, which corroborated his employment as a carpenter's
helper. The company turned out to be nonexistent. The subject
received $2,865 for lost wages and medical bills.
On November 4, 1996 in New Bedford Superior Court, Clinton
Pina pled guilty to two counts of larceny, two counts of conspiracy
and three counts of motor vehicle insurance fraud. He was sentenced
to 18 months in the House of Correction, suspended with probation
and ordered to pay restitution of $2,865. Assistant Attorney
General Margaret Parks prosecuted the case.
Chicopee Man to Serve 15 Months
CHICOPEE- A Chicopee man had reported the theft of his
pick-up truck. That same day the vehicle was involved in an accident,
reportedly driven by one of the subject's friends. However, police
found both the subject and his friend near the scene of the accident
and charged the subject with drunk driving. The subject admitted
in an Examination Under Oath that he staged the theft of the automobile
and lied to police and Commercial Union Insurance Co. about the
theft.
Thomas Stewart was found guilty after trial of insurance
fraud in Northampton District Court on February 10, 1997. He
was sentenced to serve fifteen months in the House of Correction.
The case was prosecuted by Assistant Attorneys General Amy Sharff
and John Woodruff.
The Division of Insurance and the Division of Standards revoked
the auto body license of Tofani Auto Body. The auto body shop
and owner were convicted of defrauding insurance companies by
submitting false rental car charges, adding damages to motor vehicles
brought to the shop before insurers could appraise the damage
and staging accidents for willing customers.
Vehicle Heads South for the Winter
BROCKTON- A subject reported to Boston Police that his
mother's vehicle had been stolen from the Brigham and Women's
Hospital parking lot. An investigation by Boston police revealed
that the subject had actually driven the vehicle to South Carolina
and abandoned it in an Amtrack parking lot.
Charges of filing a fraudulent insurance claim, attempted larceny,
filing a false police report and conspiracy against a Brockton
man were continued without a finding for one year in Roxbury District
Court on November 27, 1996. He was ordered to pay a $1,500 fine.
The case was investigated by Boston Police Detective Sergeant
Kenneth A. Lamb and prosecuted by Assistant Attorney General Sean
J. Kealy.
"If It Ain't Broke, Don't Fix It!" Case Update
FRAMINGHAM- A Framingham man admitted to following the
orders of his former employer in staging motor vehicle accidents.
Brian Gorgone pled guilty in Framingham District Court
on February 10, 1997 to four counts each of motor vehicle insurance
fraud and larceny. He was sentenced to 18 months in the House
of Correction, 60 days to be served on an electronic bracelet
to limit his travel between his home and workplace. Gorgone,
who currently owns his own auto body shop, faces the potential
loss of his auto body license. His former employer has previously
pled guilty to insurance fraud charges. Assistant Attorney General
Brian P. Burke prosecuted the case.
Attorney Charged with Embezzlement
STOUGHTON- A Stoughton attorney allegedly embezzled approximately
$22,000 of his clients' money. The attorney handles personal
injury claims of individuals living in the Greater Lowell area,
many of whom are Cambodian immigrants. He allegedly accepted
insurance company settlement checks on behalf of his clients and
then failed to disburse the monies to them.
A Stoughton attorney was charged with four counts of embezzlement
in Lowell District Court on January 23, 1997. Assistant Attorney
General Brian P. Burke is prosecuting the case.
Anonymous Phone Call Alerts Carrier to Fraud
NORTH EASTON - A North Easton woman reported an alleged
hit-and-run accident in which her Ford F150 pick-up sustained
$1,983 worth of damage to the right passenger side. An anonymous
phone call alerted the carrier, Commerce Insurance Company, that
the vehicle had recently been involved in a claim with another
carrier. Investigation revealed that the pick-up, while being
driven by a friend of the subject's a month earlier than the reported
accident, was involved in a motor vehicle accident. Damage to
the right passenger side was appraised at $2,149 by John Hancock
Insurance Company. Photographs from the two carriers show identical
damage and both damage appraisals list identical damage to the
vehicle.
Complaints were issued against two subjects on charges of insurance
fraud, larceny and conspiracy in Taunton District Court on March
4, 1997. Assistant Attorney General Sean J. Kealy is prosecuting
the case.
"Former Insurance Appraiser Indicted" Case Update
MALDEN- A Malden man reported to Hanover Insurance Company
that his automobile had sustained damages from an accident and
he received a $3,000 payment for the repairs to the vehicle.
Investigation revealed that the subject actually staged the accident
with the owner of a Raynham auto body shop by substituting another
damaged vehicle for the appraisal.
Christopher Delling pled guilty to insurance fraud and
larceny in Lawrence Superior Court on December 17, 1996. He was
sentenced to a two year suspended sentence in the House of Correction,
ordered to pay $3,000 restitution and to perform 50 hours of community
service. Three other subjects in this case received pre-trial
probation on January 3, 1997 in Norfolk Superior Court. Between
the three subjects, they were ordered to pay more than $22,000
in restitution and court costs. One of the subjects was also
ordered to stuff envelopes in a mailing that will be sent to all
body shop owners. That letter was reprinted in the December 1996
issue of focusFraud. Other subjects in this case have
previously pled guilty. Assistant Attorney General Brian P. Burke
prosecuted the case.
Taunton Pair Allegedly Arrange Theft and Torch of Vehicle
TAUNTON- A subject and her boyfriend reported her vehicle
stolen to the Taunton Police Department and to Trust Insurance
Company. The vehicle was recovered burned in a neighboring town.
The pair allegedly arranged for another subject to steal and
burn the vehicle to collect the insurance money for the theft.
Complaints were issued against three subjects in Taunton District
Court on January 10, 1997 on a total of nine counts of insurance
fraud-related charges. A Bristol County Assistant District Attorney
will prosecute the case.
Conscientious Passenger Reports Fraud
BROCKTON- A Brockton man reported that he was involved
in a two vehicle accident. However, one of the alleged passengers
called the insurance carrier, Hanover Insurance Company, and stated
that the claim was fraudulent and that she had been approached
by the subject to participate in the staged accident.
Two subjects admitted to sufficient facts on charges of insurance
fraud and attempted larceny in Brockton District Court on February
24, 1997. Their cases were continued without a finding for six
months. Assistant Attorney General Kevin P. Brekka prosecuted
the case.
What are Friends For?
NEW BEDFORD- A New Bedford woman and some friends allegedly
staged the theft of her Ford Escort from her home. She confided
to a friend that she wanted to get rid of the vehicle because
she could no longer afford it. Friends allegedly drove the vehicle
from the subject's home using a spare key provided by her, inflicted
damage to the vehicle and left the vehicle at an industrial park
to be discovered. One of the friends admitted to IFB investigators
his part in the staged theft. The subject received more than $4,000
from Metropolitan Property & Casualty for her alleged loss.
A complaint was issued in New Bedford District Court on February
3, 1997 against a subject on charges of insurance fraud and larceny.
Assistant Attorney General Darlene Luccio Jordan is prosecuting
the case.
Color Blind Driver
WEST SPRINGFIELD- A subject reported his Mazda 626 stolen
from the Holyoke Mall. He claimed to Commerce Insurance Company
that at the time of the theft the vehicle was in perfect condition.
Investigation revealed that the subject purchased the vehicle
in a damaged state. The previous owners stated that the vehicle
had been involved in a rollover accident and that the damage to
the vehicle was so severe that they were unable to repair it.
The subject substituted a different Mazda 626 for his CARCO inspection,
which reflected a vehicle of a different color and with a different
transmission and VIN.
A West Springfield man admitted to sufficient facts on charges
of insurance fraud and attempted larceny. The case was continued
without a finding in Springfield District Court on January 22,
1997. He was placed on probation for one year and ordered to
perform 80 hours of community service. The case was prosecuted
by Assistant Attorneys General Amy Sharff and John Woodruff.
NORTH PROVIDENCE- In a case investigated by IFB investigators
and referred to the U.S. Postal Inspection Service in Rhode Island,
a North Providence man was arrested and charged with insurance
fraud in U.S District Court in Providence on March 24, 1997.
The subject was allegedly involved in a motor vehicle accident.
He reported his claim to his insurance carrier, General Accident
Insurance Company, and received $23,020 for medical and lost wages.
The subject allegedly claimed total disability from his work
and allegedly inflated his earnings.
Just Clowning Around
SPENCER- A Spencer school bus driver allegedly claimed
to be totally disabled when she strained her right shoulder while
opening and closing a school bus door. She collected more than
$20,000 in benefits from National Union Fire Insurance Company
over a two year period for her alleged disability. However, investigation
revealed that the subject worked two part-time jobs, one as a
personal care attendant and another as "Boom Boom the Clown".
Although a videotape surveillance of the subject performing her
clown act shows no apparent physical limitations, the subject
declined another position with her employer claiming her shoulder
injury prohibited her from driving.
A Spencer woman was indicted in Worcester Superior Court on
March 11, 1997 on charges of workers' compensation fraud and larceny.
Assistant Attorney General Erin K. Olson is prosecuting the case.
Ex-Wife Turns in Husband
BELCHERTOWN- A subject sustained a work-related injury and received
temporary total workers' compensation benefits for more than
six years and a lump sum settlement. Subsequent to these payments,
the subject's ex-wife notified American Hardware Insurance Company
that the subject had been employed for a portion of the time he
was collecting the benefits. The subject collected more than
$24,000 in benefits during the time he was gainfully employed,
however he failed to reveal this employment to the insurance carrier.
Gerald Labonte pled guilty to workers' compensation
fraud and larceny in Springfield District Court on March 13, 1997.
He was sentenced to two years in the House of Correction, suspended
for five years, and ordered to pay $15,000 restitution. Assistant
Attorneys General Amy Sharff and John Woodruff prosecuted the
case.
"Mere Injury Doesn't Hinder Good Service" Case Update
ARLINGTON- A subject sustained a work-related injury and
collected a total of $2,700 in accordance with a long-term disability
insurance policy provided by his employer. The subject made several
written statements to Universal Underwriters Insurance Company
that he had not returned to work. However, he was found to be
working full-time as a concierge while continuing to collect long-term
disability benefits. He also received $1,160 per month in social
security disability payments during the same period he was working
full-time as a concierge but claiming the disability.
The case against an Arlington man was continued without a finding
for five years in Cambridge District Court on October 10, 1996.
He was fined $850 and ordered to pay $6,888 restitution. Assistant
Attorney General Sean J. Kealy prosecuted the case.
UPS Employee Pleads Guilty
MILLIS- An employee of United Parcel Service claimed to
be totally disabled when she hurt her back while lifting a package.
She collected total disability benefits for more than two years
from Liberty Mutual Insurance Company despite being employed at
Millis Ice Cream Barn and Mini Golf.
Carson Hire pled guilty to charges of workers' compensation
fraud, insurance fraud and larceny in Dedham District Court on
March 4, 1997. She was sentenced to two years in the House of
Correction, suspended, and ordered to pay $9,000 restitution.
The case was prosecuted by Assistant Attorney Darlene Luccio
Jordan.
Recurring Back Injury
DORCHESTER- A subject allegedly had three separate, but
overlapping, workers' compensation claims resulting from three
allegedly different accidents in which he incurred back injuries.
He received over $30,000 in benefits for his alleged injuries
from Reliance and Aetna Insurance Companies. USF&G Insurance
Company denied the third claim.
A Dorchester man was indicted on January 22, 1997 in Suffolk
Superior Court on two counts of insurance fraud, two counts of
larceny, two counts of attempted larceny and one count of workers'
compensation fraud. Assistant Attorney General Jennifer Renna
Ferreira is prosecuting the case.
Oops! It Happened Again!
ATTLEBORO- An Attleboro man reported that he was reinjured
at his home several years after he had sustained a work-related
injury. A DIA judge had found the subject totally disabled for
a nine month span after the initial injury and then for a full
year upon the reoccurrence of the injury and partially disabled
thereafter. During the subject's periods of total disability,
he allegedly was employed part-time as a janitor at two separate
jobs. The subject failed to disclose earned income to Travelers
Insurance Company and, in fact, maintained that he had not worked
since the re-occurrence of his injury at a DIA hearing and at
two IMEs.
In Attleboro District Court a complaint was issued on January
2, 1997 against a subject on charges of workers' compensation
fraud and larceny. The case is being prosecuted by Assistant
Attorney General Jennifer Renna Ferreira.
Security Guard Placed on Probation
RANDOLPH- A Randolph man claimed post-traumatic stress
injury as a result of a shooting incident that occurred in 1991
in the course of his employment as an armed security guard. He
stated to his employer and to medical doctors that he was unable
to work and feared being in public. His employer subsequently
offered him a position as an unarmed guard/gatekeeper or dispatcher
but the subject failed to respond to the offers. Investigation
revealed that the subject, while receiving workers' compensation
benefits, was actually working at a former employer as a security
guard. This employer stated that the subject did not appear to
be under any stress and did not act any different than when he
was previously employed by him.
A Randolph man pled guilty to workers' compensation fraud,
insurance fraud and larceny on March 17, 1997 in Norfolk Superior
Court. He was placed on probation and ordered to pay restitution.
Assistant Attorney General Jennifer Renna Ferreira prosecuted
the case.
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