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Sidney L. Allen, 45, of West Liberty, had insured his construction company with Kentucky Employers’ Mutual Insurance (KEMI). However, he did not have workers’ comp coverage for a logging business he also owned.
The fraud was discovered when an employee was injured in a logging accident and filed a workers’ comp claim with KEMI. Allen falsified documents claiming the employee worked for the construction business and was injured when he fell off a ladder.
Final sentencing for Allen is scheduled for Aug. 25 in Morgan Circuit Court. According to court documents, the commonwealth recommended a sentence of five years to be diverted for five years; restitution of $109,985 to be paid to KEMI prior to sentencing; the filing of an anti-fraud plan for any business for which Allen has an ownership or management interest; and a fine of $109,985.
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