The investigators at the
Injured Workers' Insurance Fund are noticing something funny in this economy.
Through layoffs, the number of people employed is obviously down, but claims for workers compensation remain the same.
"When you have people that may not have a job to come back to, they're more inclined to stay on workers compensation if they can because at least they have a check coming in," said the Director of Fraud Operations at IWIF Jerry Landsman, "You will have people who will try to stay out longer because that's at least a source of income for them."
It is a fraud at taxpayer expense.
Cases like a restaurant manager, his injury; back hip and foot. He was out of work collecting money but was well enough to play full contact lacrosse. IWIF’s fraud division took video of the suspect playing in a game, afterward he pleaded guilty to felony theft.
Then there is the case of a state trooper who claimed he had multiple injuries suffered on the job and needed money because he couldn't work. Fraud investigators took video of him riding a motorcycle.
All cases come at a hefty price.
"It is a lot of taxpayer money, it's a lot of business owners money for the insurance premiums and also the payments they make to unemployment," said Senior Fraud Manager Lesley Tomkins.
Tomkins’ team runs video surveillance on possible fraud cases and tries to catch healthy workers bilking the system.
"They're working side jobs and collecting cash payments or payments that are off the books. they are collecting their disability benefits and also do some kind of work."
Like the case of cement finisher Clarence Gentry. He said he injured his back and couldn't work but there is video of him clearly working the same job.
It is a double dip IWIF calls it that landed Gentry some time. He is still serving his 6 month sentence and paying off his 33 hundred dollar restitution after being found guilty of fraud.
IWIF says its nearly three thousand fraud investigations result in about 30 prosecutions a year like Gentry's.
That number hasn’t budged despite less people working these days.
They are numbers that don't add up and suggest fraudulent workers comp claims in this economy are on the rise.
A red flag IWIF says employers need to notice.
"The employees can feel this. They know if business is busy or slow and if they know there are about to be layoffs, they should document claims as thoroughly as possible," said Tomkins.
Combating a fraud that bilks the insurance company, the business, and your tax dollar.
