KY DOI Releases Fraud Convictions Activity For July 2009

Frankfort, KY (CompNewsNetwork) - The Kentucky Department of Insurance published a report of fraud convictions activity for July of 2009:

 

Fraud Statistics

    Month YTD

Total Referrals Received        122 666

Closed Referrals       0 451

Open Cases 235

Assigned Cases (Investigations)   9 61

Closed Cases (Investigations) 14 45

Closed Cases (Investigations)

Exceptionally Cleared - 

Declined by Prosecutor       0 7

Charges       4 34

Convictions       6 51

Restitution Ordered   $48,290.75 $747,509.06

Convictions Activity related to Workers Compensation:

Ronald L. Amis – On 7/12/2000, Amis injured his back while employed by The Rental Depot, Inc., when he was installing a tent at the Louisville Bible College. He was awarded a lump sum settlement payment in the amount of $36,473.58 based on a 15% permanent partial disability. Kentucky Employers Mutual Insurance (KEMI), the insurer for The Rental Depot, received a Motion to Reopen the claim, as Amis alleged a worsening condition to the point he was now totally restricted from any type of gainful employment. In a sworn deposition, Amis indicated he had not worked anywhere since his initial injury. Video footage for five days in 4/2003 depicted Amis performing multiple physical tasks, i.e., erecting a chain link fence, carrying and climbing up and down a ladder, using a post hole digger, shoveling dirt, mixing concrete and carrying various heavy items. He was also observed moving large bags of mulch, truckloads of flowers, plants and a large tarp which he rolled up and tied with twine. On 3/28/06, Amis was indicted by the Jefferson County Grand Jury on one felony count of fraudulent insurance acts and one felony count of Perjury First Degree. On 5/29/08, Amis pled guilty to the Perjury First Degree charge with the felony fraudulent insurance acts charge being dismissed without prejudice. He was sentenced to two years diverted for two years and ordered to pay court costs in the amount of $125.00 within 60 days. Restitution is to be determined.

Diana S. Butler – Butler filed a claim for lost wages under her Personal Injury Protection (PIP) policy with Kentucky Farm Bureau Insurance (KFB). On or about 4/25/05, Butler presented a fraudulent wage and salary verification form to KFB, indicating that she was employed when she was not. On or about 7/27/05, she presented a counterfeit work statement to KFB. On 10/16/08, Butler was served with a criminal summons for two felony counts of fraudulent insurance acts. On 11/19/08, Butler was arraigned in Jefferson District Court without counsel, and agreed to pay restitution in the amount of $3,200.00 to KFB by 10/27/09. She was sentenced to 365 days conditionally discharged for two years. If restitution is paid in full, the charge will be amended to a misdemeanor charge of attempted fraudulent insurance acts over $300. If restitution is not paid, Butler will waive to the Grand Jury. On 6/2/09, Butler pled guilty to the amended misdemeanor charge. Prosecution declined on the second felony count.