Man faces prison, fine for alleged workers' comp fraud

Man faces prison, fine for alleged workers’ comp fraud

June 22, 2010 by Fred Hosier

Posted in: construction safety, Falls, In this week's e-newsletter, Injuries, Latest News & Views, Workers' comp

It’s not unusual for employees who claim they were injured on the job to get caught working or playing sports without the alleged effects of their injuries. In this case, the worker claimed he needed to use a wheelchair. But the worker was caught walking perfectly by …

… the judge presiding over a lawsuit he’d filed in connection with the alleged incident.

Steven Harder of Woodland, CA, claimed he’d fallen from an excavator on May 5, 2004, causing a severe brain injury. But authorities say he was actually injured in a non-work auto crash.

Harder said he became very sensitive to light and his overall vision was poor.

He was awarded workers’ comp benefits and collected $414,171 from State Fund Insurance.

He also sued the manufacturer of the excavator. That lawsuit was settled for $20,000.

But Harder’s alleged fraud was uncovered during the lawsuit against the excavator manufacturer. Harder had shown up for court using a wheelchair. At a lunch recess, the judge witnessed Harder walking to a restroom with a normal gait, without using the wheelchair or any other device.

An investigation followed. Undercover video was obtained of Harder showing him wearing a wet suit and engaging in mining activities.

Harder turned himself in. He faces one felony count of knowingly making a false or fraudulent material statement or material misrepresentation for the purpose of obtaining compensation. If convicted, he could receive up to five years in prison and a $50,000 fine.

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Tags: excavator, prison, workers' comp fraud

http://www.workerscompsettlementsandlaws.com workers comp laws

People like this deserve all the fees and possible jail time they get. It’s these folks that drive up the cost of workers comp for everyone, employees and employers. He got over $400,000 from the state fund that all employees pay into from their paychecks. I think if people really thought about where the money comes from (their paychecks) this guy would have to watch his back.
SafetyMan

Jan, some people think they’re too smart to get caught. Problem is, the comp laws are often so lax that it’s difficult to prove fraud.
The thing that bothers me about this case is the medical documentation aspect. With the claimant saying he needed a wheelchair, didn’t the judge ask for substantiating medical documents? If such documents existed, then the doctor should be hauled in to answer why his medical assessment was so far out of line with reality. If there were no such medical documents supporting the claimant’s position, then case closed. There is a disconnect somewhere.
Jan

When will people comprehend that when you file WC claim, you darn well better be disabled?? Doesn’t everyone know by now that you will be investigated and you will be found out to be the fraud that you are? And when they do find them, high $$$ fines AND a long time in the pen would be a great justice.
sheralroh

I have one of these guys. It is so frustrating and I can’t figure out how to put the screws to him. Way to go Judge. Now if only the rest of the judges can go through some kind of training to recognize the fraud instead of just handing out the money.
RandiG

I agree with all who said he should pay back the entire amount he was awarded, plus a punitive fine should be levied on him also. $50,000 is nowhere near adequate for his crime. All of us pay for this kind of fraud and consequences need to be severe.
Coltsfan George

Pay the 400,000+ back, fine him, and since he really isn’t hurt, 5 years breaking big rocks into little rocks, and little rocks into mortar. Book’em Dan-O
SafetyMan

This guy got caught because (1) he was stupid and (2) he was stupid in front of the judge. Unfortunately, many of the people that cheat the system are a lot smarter and know just what they need to do to perpetuate their fraud. The penalty should be fines, restitution and jail time and they should be severe enough to either deter people or give them something to think about if they get caught and thrown in the slammer.
Me

So, it takes a judge to make what we’ve been saying all along happen. Are you reading this OSHA/DOL?!?
DM

only a 50,000.00 fine??? that means he has 364,171.00 to use. He should have to give it all back plus some, because it cost the work comp., court etc. time. Come on don,t let him off with a small fine. otherwise why sholdn’t somebody else try? think of it as getting 72,800.00 per year for his time in prision. not bad.
Mike

They shouldn’t set limits on the fine. The fine should be $434,171 and the money should return to the 2 parties that paid him the settlements.