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The Truth about Workers’ Compensation Fraud

Many media sources speak to the existence of workers’ compensation fraud. The emphasis is normally on fraud perpetrated by injured workers. Unfortunately, the big picture is rarely discussed in our traditional media.

The dollar value of fraud perpetrated by employers and medical providers dwarfs that perpetrated by other players in the system. Of the ten largest workers’ compensation fraud matters in 2014, the only one involving an injured worker was a nurse in Georgia who filed a fraudulent federal workers’ compensation claim. The other nine of the top ten all included employers or medical professionals.

The largest case involved a California medical equipment company which was indicted with multiple felony counts of over billing for therapy machines in the amount of $36 million dollars. The second largest fraud scheme involved medical professionals who were charged in a $25 million dollar workers’ compensation fraud. This fraud involved the creation of a pain relief cream and kickbacks to doctors who agreed to prescribe it.

When you see information about individual workers engaging in fraudulent activity in the traditional media, remember you are getting only part of the story. For more information, see the following articles:

Lowe’s Settled Independent Contractor Misclassification Case for $6.5 Million

Medical Equipment Company Overbills $36 Million

15 Medical Professionals Indicted in $25 Million Scheme – Small Child Dies

Paving Company Cheats System of $4 Million

False Insurance Certificates Check Cashing Scheme Defrauds Insurance Company of $1 Million

Man to Pay $806,000 for Underreporting Payroll to Workers’ Comp Carrier

Paul Johnson Drywall Inc. Agreed to Pay $600,000 in Back Wages, Damages and Penalties

Summit Drywall, Inc. Ordered to Pay $550,000 in Unpaid Wages and Damages to 384 Workers

Drywall Company Owners Arraigned on $420,000 in Fraud Charges

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