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Paid over $200,000 in fine, restitution in workers' comp case
Frankfort, KY (CompNewsNetwork) - A West Liberty, Kentucky man pleaded
guilty in Morgan Circuit Court to one felony count of insurance fraud after giving false
information to his workers' compensation insurance carrier.
Sidney L. Allen, 45, paid $109,985 in court-ordered restitution to Kentucky Employers'
Mutual Insurance (KEMI) and a fine of the same amount to the Kentucky Department of
Insurance Fraud Investigation Division for investigative costs. Allen originally was fined
$219,970 (twice his gain) but half was diverted and payment will not be required if Allen
complies with the agreement. He was sentenced to five years in prison, which also was
diverted for five years. Allen cannot own nor have access to a handgun or firearm and must
file an anti-fraud plan for any business entity for which he has ownership or management
interest.
According to court records, Allen insured his
construction company with KEMI but 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.
The Department of Insurance is an agency of the
Public Protection Cabinet.
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