North Carolina Workers’ Compensation Fraud Alert: 18 People Busted for Major Scam in NY

February 21, 2012, by Michael A. DeMayo

Let there be no doubt: if you are charged with and convicted of North Carolina workers’ compensation fraud (or grand larceny, false statements, conspiracy, etc), you might face massive jail time, astronomical fines, and other penalties.

A disturbing case of New York workers’ comp fraud has been circulating in the blogosphere. 18 people in 13 counties across New York were arrested in a state-wide crack down. One of the accused, John Czechowski, allegedly took $12,000 from a New York state insurance fund. He suffered a back injury while doing roofing work. Investigators found that he was working off the books for a different company while continuing to collect workers’ comp for the back injury.

Commenting on the case, a spokesperson for the New York State Department of Financial Services blamed fraud artists for victimizing both companies and taxpayers. He emphasized that the state will end fraud to reduce the cost of insurance for workers’ compensation.

Case in Context

It’s easy to understand why fraud poses such a problem – not just for individuals who need money to pay for time off of work and medical costs, but also for employers and even insurance companies. When scam artists drain money from the system, those costs must be compensated. It’s not as if North Carolina can just print more money and call it a day. That money gone becomes money taken out of everyone’s pocket.

There is also a more subtle danger: fraud degrades trust.

Insurance companies who have been ripped off will institute more strict investigative rules to check up on future claimants. Legitimate claimants will then find themselves put through the gauntlet and often interrogated at length. This can be a stressful experience, if you’re in the middle of recovering from an injury.

As the network of trust unravels due to fraud, everyone pays in ways that transcend purely financial repercussions.

Given that you are not in a position to stamp out fraud yourself – you just want to make sure that you get fairly and justly treated by the system – what should your next steps be?

An experienced and a reputable North Carolina workers’ compensation law firm can help you come up with the most appropriate plan and protect your assets and rights.

More Web Resources:

New York state workers’ compensation fraud dragnet sweeps up 18 suspects

How fraud damages trust in the system

 
 

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