Fraud Roundup

Washington Man Sentenced for Defrauding Workers’ Comp System

Willard Leech of Bellingham, Wash., has been sentenced to 30 days in jail and 12 months of community supervision for illegally collecting workers’ compensation wage-replacement benefits while working at another job.

Leech, 53, was receiving time-loss benefits for a low-back injury that supposedly prevented him from working. Yet, for more than 10 months, Leech worked steadily at general carpentry and was observed working on a ladder and maneuvering roof trusses into place.

An investigation by Washington’s Department of Labor and Industries led to Assistant Attorney General Susan DanPullo filing charges against Leech, who pleaded guilty to first-degree theft. He was sentenced Sept. 13.

In addition to his jail sentence, which he may serve alternatively through electronic home monitoring or daily work release, Leech was ordered to repay L&I the nearly $19,000 he illegally collected in benefits, plus court costs of $800.

Leech’s conviction stemmed from a workplace-injury claim originally filed in 1988, later closed and then reopened in 2004. When L&I discovered that he was continuing to work while collecting benefits, the agency issued fraud orders. L&I moved to file criminal charges against Leech because he had previously committed fraud against L&I.

In 2003, Leech was ordered to repay approximately $5,600 for illegally collecting workers’ compensation wage-replacement benefits.

Framing Contractor Ordered to Pay Calif. State Fund $291,444

San Diego County Superior Count Judge David Danielsen has ordered framing contractor Christopher Nicol to pay $291,440 in restitution to California’s State Compensation Insurance Fund. Nicol, 38, owner of BC Framing, pleaded guilty to one count of Insurance Code Section 11880 (a) — workers’ compensation insurance premium fraud. Judge Danielsen also imposed a sentence of 365 days in the custody of the sheriff but stayed that custody pending Nicol’s successful completion of probation.

BC Framing specializes in residential and commercial framing projects in East San Diego County.

State Fund provided workers’ compensation insurance coverage to BC Framing from November 2001 through June 2005. According to SCIF, the fraud was first reported when a State Fund auditor received a tip by one of Nicol’s business associates regarding the company’s payroll reporting practices. SCIF then conducted an audit of BC Framing’s workers’ compensation records, which uncovered hundreds of thousands of dollars in underreported payroll. State Fund’s Special Investigation Unit submitted a report of its suspected fraud case to the San Diego County District Attorney’s Office and the Department of Insurance for its review.

State Fund assisted the San Diego County District Attorney’s Office, including prosecutor David D. Bagheri, in its investigation, which included a detailed audit of Nicol’s workers’ compensation records.