Tag Archives: workers’ compensation fraud

What Workers’ Compensation Fraud Actually Looks Like

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Some company owners fund lavish lifestyles with the money they steal through fraud.

What does workers’ compensation fraud actually look like? It looks like big insurance skimming billions of dollars and wealthy businesses living lavishly on workers compensation funding. Fraud costs everyone involved in the workers compensation system. Unfortunately the insurance and business interests continually claim employee fraud is a major problem. In reality worker fraud is a very small problem, accounting for less than 5% of fraud costs. A recent PBS segment summarized this fact very well. Please take a moment to read this and get the facts.

My respected North Carolina colleague, Leonard Jernigan, has studied real fraud costs for several years. His recent article, Billions in Employer Fraud: Top Ten Cases of 2011 is a must read for everyone who cares or is interested in the workers compensation system. Check out items 2 and 3 from his list below to see the old adage “if you are going to steal, steal a lot” at work in the workers’ compensation system:

  1. Compensation Risk Managers commits $1 billion in fraud, forcing many small businesses to close.
    Compensation Risk Managers (CRM), a company that acted as trust administrator for small business in New York State who self-insured for workers’ compensation, was sued in 2009 for $400 million in a lawsuit for fraud. Continue reading
The offices of Rehm, Bennett, Moore & Rehm, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

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