Today’s post was shared by Gelman on Workplace Injuries and comes from daviddepaolo.blogspot.com
Does fraud really matter?
Respected colleague Leonard Jernigan from North Carolina writes a yearly blog post about fraud in workers’ compensation. His current record over the five years he’s written this post is that for each top 10 list, the largest dollar amounts stolen are in the category of employer fraud, except for one employee incident, which happened this last year, so the record is 49 employers, 1 employee.
The very complicated article below definitely falls into the employer fraud category. David DePaolo writes about an incredibly complex situation that affected workers, employers and the greater society in a number of states, including Oklahoma, which made a major change to the workers’ compensation system last year.
“And who knows how much of the failure of Park Avenue and Imperial Casualty and Indemnity Co. contributed to that state’s abysmal rate work comp insurance cost ranking leading up to last year’s historic opt-out legislation,” he wrote in the article.
My point is that when anyone commits fraud in a workers’ compensation system, regardless of the state, there can be far-reaching consequences for society being stuck with the bills of that fraud and for injured workers and also employers who play by the rules. In addition, absorbing the cost of that fraud can also be far-reaching, even potentially contributing to changes to an entire workers’ compensation system.
Just ask Oklahoma.
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Corporate fraud is a major problem in the workers’ compensation system. Today’s guest post authored by David DePaola is shared from http://daviddepaolo.blogspot.com and highlights a very serious problem with the nation’s workers’ compensation system.
What do Oklahoma, New York, Washington, Kentucky and Florida have in common?
If it’s workers’ compensation, then the connection is a far reaching scheme involving millions of dollars, failed insurance companies and professional employer organizations. A federal grand jury in New York back in October 2012 indicted Wilbur Anthony Huff, principal behind a couple of professional employer organizations, Matthew Morris, Park Avenue Bank’s former senior vice president, and Allen Reichman, the former director of investments at New York investment house Oppenheimer & Co. U.S. Attorney Preet Bharara said in a press release that Huff, who secretly controlled South Florida PEOs O2HR and Certified HR Services, was at the “vortex of fraud” in a series of schemes involving more than $100… |
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