Kentucky Reports Fraud Against Employers Mutual Insurance

                               

Frankfort, KY (CompNewsNetwork) - Insurance Fraud Investigation Division reported Sidney Allen On or about 7/22/03,  misrepresented his business interests when he told Kentucky Employers Mutual Insurance (KEMI), his workers' of compensation carrier, that he was in the construction business when in fact he was in the logging business. Furthermore, he presented a contract to Donovan Finch that purported to evidence workers' compensation insurance when there was no such coverage in force.

On 2/26/07, Allen was indicted on two felony counts of fraudulent insurance acts in Morgan Circuit Court. He was arrested on 3/16/07, and entered a Not Guilty Plea on 3/26/07. A jury trial is scheduled for 10/27/07, with a pre]trial conference scheduled on 9/24/07. On 8/25/08, Allen pled guilty to one felony count of fraudulent insurance acts with the other felony count dismissed. He received five years diverted for five years, and paid restitution in the amount of $109,985.00 to KEMI. He was ordered to pay a fine in the amount of $109,985.00 ($219,970.00 with $109,985.00 diverted) to the Fraud Division for investigative expenses and must file a fraud prevention plan with the Fraud Division.

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