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BWC continues workers' comp fraud crack down in 2002

BWC's Special Investigations Division is building on last years' success of identifying more than $88.6 million in savings, referring a record 256 subjects to the Attorney General's Office for prosecution, and achieving 80 convictions.

"Governor Taft and I are committed to stopping those who steal from legitimate injured workers and Ohio employers by committing workers' comp fraud," said James Conrad, BWC Administrator/CEO. "We expect that as much as 10 percent of BWC future savings will come from the efforts of the Special Investigations Department."

Under the Administration of Governor Bob Taft, BWC fraud operations have uncovered more than $290 million in workers' compensation fraud. These savings are the result of Ohio's investment in uncovering workers' compensation fraud. In fiscal year 2001 and for the third consecutive year, each dollar spent investigating fraud yielded more than $8 dollars in savings.

The following are recent cases BWC investigators have been able to label "closed."

Logan man gets 14 months for working while receiving compensation
Jerry Johnson, a Logan resident, worked for the Logan Daily News as a motor route driver delivering newspapers, but after injuring his knee at work, he kept delivering while his paychecks were made out to his wife. The BWC Logan Special Investigations Unit established that Johnson's paychecks were payable to his wife to hide his work.

For nearly seven years, Johnson collected permanent total disability compensation while working and concealing business activities. Johnson plead no contest to one count of Workers' Compensation Fraud a 4th degree felony. In Hocking County, Judge Thomas H. Gerken sentenced Johnson to 14 months in jail with a suspension of 13 months. Johnson spends the rest of the time in the Regional Jail. Once out of jail, Johnson will be on community control for five years. Johnson owes BWC $89,039.08 and must pay monthly restitution payments until paid in full.

Cincinnati-area chiropractor caught scamming state more than $126,000
A Cincinnati chiropractor owes the State of Ohio $126,387.56 for billing BWC for treatment of injured workers when no treatment was performed. Craig A. Allgower D.C. pled guilty to one count of felony workers' compensation fraud, was sentenced to five years community control, court costs and ordered to pay restitution in the amount of $126,387.56.

A tip noting Allgower had billed for chiropractic services for a patient who was hospitalized on the dates of service billed began the investigation in February 1998. The investigation included review and analysis of payment data, interviews with former patients and employees, and subpoenaing Allgower's records.

The evidence collected showed Allgower's pattern of routinely submitting fraudulent bills for services to BWC patients. Statements of patients, employees, and evidence seized by search warrant included treatment files and billing files and 1998 and 1999 office appointment books leading to fraud.

Five jobs and a computer cross match uncovers workers' comp fraud
John McCallister, a Mentor resident, liked to work. He liked to work so much that he had five jobs while collecting workers' compensation benefits. BWC routinely cross matches records with the Ohio Department of Job and Family Services to find people working while collecting benefits.

From Dec. 1999 to March 2000, McCallister gathered $8,112.71 in benefits while working. McCallister plead guilty to one count of a 4th degree felony of workers' compensation fraud. Judge Kathleen Sutula sentenced him to three years community control; 100 hours of community service; and maintain a full-time job. He must pay a $5,000.00 fine within six months and pay restitution of $8112.71 within 60 days. Violation of the terms and conditions may result in more restrictive sanctions, or a prison term of 18 months.

There are no winners with workers' compensation fraud.

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