Nailed

Faking workplace injuries to get drugs nets jail time for King County man

Fri, 17 May 2013 09:30:19 -0700

Jose Ramon Amaya-Hernandez thought he found the perfect way to score narcotics – show up at a hospital claiming to be in pain due to a work related injury. However, investigators with the Department of Labor & Industries (L&I) uncovered his scam.

According to prosecutors, Amaya-Hernandez filed a total of 53 claims for injuries over a three year period. The claims were filed at a dozen different Seattle area hospitals.

L&I later denied these claims because there was no record that Amaya-Hernandez ever worked for any of the employers he reported. However, the hospitals had already provided him with narcotics for his phony injuries.

Although Amaya-Hernandez used several aliases, L&I investigators became suspicious. Using a cross-match through the Department of Licensing, they determined his actual identity and built their case.

On April 24, Amaya-Hernandez plead guilty to three counts of obtaining a controlled substance by fraud, receiving a sentence of 45 days in jail on each count, to run concurrently. He must also pay fines plus restitution to the hospitals he cheated.

Tacoma woman pleads not guilty to theft of $50,000 in worker’s comp benefits

Thu, 16 May 2013 12:31:43 -0700

Read more in the News Tribune about L&I’s latest efforts to reign in abuse of our workers’ compensation system.

Jail, restitution ordered for Tacoma couple

Thu, 04 Apr 2013 16:47:46 -0700

Jaime Beroth, 63, and her husband Lawrence Beroth, 67, received sentences this week after pleading guilty to one count each of second degree theft in Pierce County Superior Court.

The Tacoma couple will both serve jail time and have to reimburse the state more than $200,000 after they both filed fraudulent workers’ compensation claims in 2009.

Both Beroths claimed injuries at work and filed claims with the Department of Labor & Industries, claiming they could no longer work. But a tip to L&I led investigators to the couple’s active drywall business, where they were secretly videotaped doing a variety of physical tasks.

Jaime Beroth was sentenced to 30 days in jail and Lawrence Beroth received a 20-day sentence. The bulk of both sentences were converted to community service. The couple was also ordered to pay over $224,000 in restitution, fines and other costs.

News Release: Tacoma couple must reimburse state $224,000 for workers’ comp fraud

Overcharging translates into jail time for interpreter

Wed, 27 Mar 2013 08:39:53 -0700

Betsaida “Betsy” Sosa received a 90-day jail term and must pay restitution after pleading guilty to first degree theft charges for fraudulently billing the Department of Labor & Industries for language interpretive services she never provided.

Sosa contracted with L&I to interpret for injured workers needing medical care, billing the agency for both her services and the mileage to her L&I appointments.

L&I auditor Tara Brink discovered that Sosa billed for amounts far in excess of the services and travel that actually occurred. Further investigation determined that she used false addresses and billed for appointments that never took place.

Under terms of her sentence in Thurston County Superior Court, the Tacoma resident may convert 60 days of her sentence to home detention or work release, if she is eligible for one of those programs. If not, she will serve the entire 90 days. She must also pay $34,208 in restitution.

News Release: Language interpreter gets jail time, must pay $34,000 for overcharging state

Towing operation hooked up with hefty penalty

Thu, 07 Mar 2013 10:00:28 -0800

A Pierce County couple must pay nearly $23,000 in restitution and fines after pleading guilty to charges that they continued to operate their Spanaway towing business after the state barred them from employing workers.

In a case I first shared with readers in October, L&I had revoked the certificate of industrial insurance for A1 Towing Service after owners Sandra and Billie Rouse failed to pay for workers’ compensation insurance for their employees.

The Rouses both appeared in Pierce County Superior Court last week and entered guilty pleas to a Class C felony for engaging in business after the certificate of coverage had been revoked.

In addition to the restitution and fines, Billie Rouse was sentenced to a 30-day jail term which was converted to 240 hours of community service.

Home Show – know before you go!

Mon, 25 Feb 2013 15:03:00 -0800

Check out this revealing look at the questionable status of some exhibitors at the recent Seattle Home Show. Then check out L&I’s new website for homeowners, ProtectMyHome.net, mentioned near the end of the video.

Interpreter sentenced for defrauding state

Fri, 22 Feb 2013 11:40:51 -0800

A Seattle man will pay more than $5,000 in fines and restitution after pleading guilty to charges that he overbilled the state for Spanish-language interpretive services.

Appearing this week in King County Superior Court, Barak J. Ramon was sentenced to 15 days in jail converted to 120 hours of community service and a total of $5,144.20 in fines and restitution.

Ramon was under contract with the Washington State Department of Labor & Industries to provide language interpretive services between injured workers and their doctors or other treatment providers. The contracted interpreters then bill the agency for services rendered, travel and other expenses.

L&I investigator Richard Lamonica and auditor Michael Pierce discovered that Ramon had used a variety of schemes to bilk the state including billing for hours he did not work; double-billing his mileage; and padding his bills.

Crimes against Humanity

Wed, 20 Feb 2013 16:26:48 -0800

Employer fraud takes many forms, but few as ghastly as the abuses discovered in 1988 on an isolated Washington farm. Don’t for a minute think it can’t happen in your neighborhood!

Speak up – we CAN hear you!

Tue, 19 Feb 2013 14:01:38 -0800

At L&I, we are committed to listening to our customers. We want to improve the way we interact with you. To that end, we’re doing a series of surveys to discover what you find most important about your interactions with us and how well we deliver our services.

During February, we will be conducting a telephone survey with randomly selected employers whose reported hours and classifications have been audited. L&I hired Ipsos Reid, an independent research firm, to conduct the survey. The identities of survey participants will not be revealed to L&I.

In the past, surveys like this have helped us identify ways we can progress, leading to service improvements in both the workers’ compensation program and the Division of Occupational Safety and Health.

If you have questions about the survey, please contact Ron Langley, L&I’s Customer Relationships Manager, Ronald.Langley@Lni.wa.gov or 360-902-4745.

Ohio roofer jailed for failure to cover employees

Tue, 12 Feb 2013 08:30:15 -0800

A judge in Ross County, Ohio, sentenced Steve Nesser to three years community control (i.e. probation), limiting Nesser’s jail time to five weekends so he could repay more of the $143,000 he owes to the Ohio Bureau of Workers’ Compensation.

Delivering value – it’s our bottom line

Tue, 05 Feb 2013 16:47:31 -0800

Lean is a process improvement system that looks for and eliminates waste. Lean focuses organizations on squeezing waste from their processes, any activity that does not produce value for the customer. People often comment that Lean improvements just “make sense” as a way of doing business.

L&I’s Field Audit program recently adopted new core processes based on Lean principles. The Field Audit program reviews the payroll and financial records of business for compliance with workers’ compensation taxes.

With Lean, the people who do the work design the process. So I asked a team of auditors from across the state to design a process that “makes sense” to them, in addition to delivering a product to our customers. The team designed their new process by reviewing best practices from each field office.

At a statewide audit conference in November, all field auditors attended basic training in Lean principles. The new process improvements include:

Reduce the time it takes to complete an audit. The goal is to complete every compliance audit within 120 days from the date it was referred to the auditor. Through a consistent approach to the audit process and changes to how we assign work, we have eliminated waste, speeding the process.
Standard work completed by each auditor. By having a standard process we are able to see problems sooner. We can then develop improvements, test their effectiveness and change applicable processes to remove barriers.
A ‘pull’ system for audit assignments. By assigning audits only when the auditor has capacity, we ensure our highest priority audits are completed faster. This is a fundamental shift in how work assignments are delivered.

Auditors began applying the new process immediately.

Lean is an ongoing process. I look to our audit staff statewide to lead our efforts toward continuous improvement and deliver timely results to our customers.

Kathy Vargas, Program Manager for L&I’s Field Audit Program, works to ensure fair and accurate employer reporting of Industrial Insurance premiums as part of the Department’s Underwriting effort.

Spokane entrepreneur a victim of his own success

Fri, 18 Jan 2013 09:31:45 -0800

A Spokane man faces first-degree felony theft charges for illegally collecting workers’ compensation benefits from Washington State’s Department of Labor and Industries.

Doyle Ronald Wheeler, 36, collected more than $113,000 from 2008 to 2011 on a workplace-injury claim for a neck and back injury. The Spokane Valley Voice wrote a story about Wheeler, citing his business success while he was receiving time-loss benefits.

L&I stopped benefit payments after an investigation determined that Wheeler was operating his own businesses while receiving the benefits. Those benefits depended on his inability to work.

This kind of fraud damages the system. It steals from everyone – taxpayers, employers who pay workers’ compensation premiums, and the injured workers who really deserve benefits.

Wheeler was arraigned in Spokane County Superior Court Monday, January 7, 2013. He faces a maximum sentence of up to 10 years in prison and a fine of up to $20,000 in addition to repaying the benefits he received.

For more information, visit News.Lni.wa.gov.

Not The Extreme Home Makeover You Had In Mind?

Thu, 13 Dec 2012 10:51:15 -0800

The best thing I can say for this home improvement horror story is that, thankfully, there were no fatalities. Do not let your contracting projects wind up in the courts—check out our homeowner’s guide!

Labor Contractor Victimized Immigrants

Wed, 12 Dec 2012 10:17:25 -0800

There is a reason why you hear over and again that when a deal seems too good to be true, it usually is. This conviction in Tennessee grabs my attention both with the stiff sentence and the comments about stealing jobs from honest employers.

Beroth Case Draws Media Spotlight

Mon, 10 Dec 2012 12:06:50 -0800

Recent charges by L&I that a Tacoma couple defrauded the state when they claimed workers’ compensation benefits have attracted considerable media attention. Check out this KOMO TV story, including surveillance footage (and some commentary from a familiar face). Judging by the view comments, we may have struck a nerve.

L&I accuses couple of working together—while on time-loss

Wed, 05 Dec 2012 14:10:37 -0800

The State of Washington has charged a Tacoma couple with one count of felony theft each for collecting workers’ compensation benefits illegally.

The couple appeared in Pierce County Superior Court for arraignment on Thursday, November 15th, 2012, entering a plea of not guilty.

L&I stopped benefit payments after an investigation determined that both continued working at their drywall company after their purported injuries occurred. Both claimed they were unable to work during this period.

Jamie S. Beroth, 63, and her husband Lawrence J. Beroth, 67, own Beroth Drywall.

Mrs. Beroth collected $100,664 in benefits over two years starting in March 2009, on a claim for a workplace injury to her shoulder.

Mr. Beroth also received $123,094.02 in time-loss benefit payments over two years beginning in August 2009.

“We discovered that Mrs. Beroth continued to work at Beroth Drywall after her injury, actually preparing and submitting her husband’s injury paperwork to L&I,” said Greg McPherson, an investigator in L&I’s Fraud Prevention and Compliance Program.

McPherson reports, “We also took videos of Mr. Beroth working at his drywall business during the time he was receiving benefits and claiming he could not. The video shows him submitting bids, purchasing and hauling supplies, preparing for and working the jobs he received.”

Whatever the outcome of the criminal case, the Beroths will not continue receiving benefits and will be asked to make restitution.

Each felony count against the couple carries a maximum penalty of 10 years in prison and a $20,000 fine. The total restitution the court could order them to repay is $223,758.

Drywall Firm Fined For Underreporting—Prime Contractor Foots the Bill

Fri, 16 Nov 2012 08:30:30 -0800

Some people never learn

Maranatha Construction, and its sister company Maranatha Drywall, have been assessed by L&I for more than $426,000 in unpaid workers’ comp premiums and penalties.

Maranatha Construction failed to report drywall square footage for a large construction project in King County, while taking advantage of discounted drywall rates. L&I audited Maranatha Construction 3 times previously, educating the firm extensively on specific drywall reporting requirements.

A fourth audit turned up significant underreported drywall square footage, along with failure to report covered workers and misclassification of worker hours. The firm received an assessment of $406,796, which they did not appeal.

Meanwhile …

Crown Drywall Estimating, operating in Washington as Maranatha Drywall, had been audited twice previously. L&I again audited Crown in conjunction with the SAIF Corporation (Oregon’s “state fund” workers comp insurer. Crown, owned by a relative of Maranatha Construction’s owner, failed to provide records for this audit.

L&I pursued a civil action against Crown, resulting in total audit premiums and penalties of more than $19,000. Prime contractor liability of $18,373 for unpaid premiums was issued to Maranatha Construction, Inc.

These firms have since stopped doing business in Washington and collection action is in progress. One prime contractor, Walsh Construction, was held liable for more than $82,000 of Maranatha’s premiums, and we received their payment November 1, 2012.

Wayward contractors surprised in weekend inspection sweeps

Fri, 09 Nov 2012 13:26:11 -0800

On a recent weekend, L&I construction compliance inspectors visited 63 work sites in Chelan and Douglas counties, citing 11 contractors for either lacking a state registration, or not being registered for the work they were actually doing.

This was the fourth weekend sweep by L&I inspectors statewide since August. L&I has carried out surprise inspections at 257 work sites since the agency began sweeps in August, and issued 41 citations for registration violations.

Don’t let your home or business be the worksite where L&I issues a citation! Protect yourself by following our step-by-step guides for homeowners and businesses.

Scammers sure to follow Frankenstorm devastation

Thu, 01 Nov 2012 14:17:52 -0700

In honor of those battling the effects of Hurricane Sandy, while at the same time noting that floodwaters are rising in our own neck of the woods, be on the lookout for dodgy operators taking advantage of those struggling in the wake of a disaster.

Unregistered contractor convicted of $600K fraud

Thu, 25 Oct 2012 07:54:21 -0700

Although a long time coming, a Seattle builder and unregistered contractor, Laurence Anthone, was convicted in King County Superior Court this week on multiple counts of theft and fraud.

On October 17, jurors found Mr. Anthone guilty of eight counts of securities fraud. They failed to reach a verdict on two additional charges. He is now scheduled to be sentenced on December 7.

Mr. Anthone’s financial shenanigans date back to 2003. As owner of MA Quick Construction, Mr. Anthone would trick investors into believing he owned or was buying a particular parcel of land for development. He would then accept investments ranging from a few thousand dollars to hundreds of thousands of dollars.

When his victims realized nothing was being built on the land, they would demand their money back. Mr. Anthone would make excuses, ignore their calls, or write checks that would then bounce. Some of the victims sued and won judgments against Mr. Anthone, however, he has never paid back any of the stolen money.

Mr. Anthone was first charged with multiple counts of securities fraud and first-degree theft in 2008, as spelled out in this Seattle Times article, ” South Seattle builder charged with bilking investors.”

There were several delays to the trial, but his victims finally got their day in court last week.

Kudos to the staff at the King County Prosecutor’s Office for remaining committed to this case, and for L&I compliance inspectors who first caught wind of Mr. Anthone’s scheme.