Workers’ Compensation Fraud Leads to Arrests

Criminal cases involving possible workers’ compensation fraud are referred to the Louisiana Attorney General’s Office for further investigation.

On October 20, 2015, the owner of a Slidell based company was arrested for willfully failing to provide workers’ compensation insurance to employees, and for failing to pay their medical bills.  An employee filed suit against the company owner when he was injured at work and learned that the company owner failed to secure workers’ compensation insurance.  The workers’ compensation judge ordered the company owner to pay approximately $61,900 in unpaid indemnity benefits, medical benefits, medical bills, mileage reimbursement, legal fees and other penalties.  He was booked on the fraud count at the St. Tammany Parish prison.

Elsewhere, in New Jersey, an insurance agent was arrested on October 22, 2015, at which time he was accused of theft of more than $2,000.  The agent allegedly collected premium payments from a Louisiana employer to be applied toward the purchase of a workers’ compensation policy.  The agent failed to apply the funds to the policy purchase, then led the employer to believe the policy was in place.  He surrendered and was booked in Jefferson Parish.

Workers’ compensation fraud is not treated lightly in Louisiana.  If you suspect someone is committing fraud, contact the Louisiana Workforce Commission and report it.