It’s Holiday Season. At every gathering or party when I indicate I represent injured workers, I am asked “Aren’t most of your clients frauds?” I respond, as patiently as I can, that the actual hard data in Wisconsin, based upon years of study, indicates less than six tenths of one percent of workers have some potential element of fraud in their claims. I further explain that the level of employer fraud makes this tiny percentage of employee fraud pale by comparison. I further note that the level of employer fraud uncovered on a daily basis is enormous.
This routinely raises an eyebrow until the actual numbers are revealed. The questioner’s interest is also piqued when I indicate the costs of medical care and disability shifted to taxpayers through inappropriate cost shifting to Social Security, Medicare and Medicaid makes us all pay the price for employer worker’s compensation cheaters.
My friend and colleague Leonard Jernigan in North Carolina has led the difficult task of revealing these employer fraud cases and has posted the Top Ten 2012 Worker’s Comp Fraud Cases. In 2012, the Top 10 cases alone cost nearly $100 million to the worker’s compensation system.
Included in the list are the following:
- Florida employer creating ten “shell” companies, funneling $70 million in undeclared and undetected payroll for construction operations to avoid paying the cost of worker’s compensation coverage, leaving employees at risk.
- Ohio companies Continue reading