Running Up a Tab

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Individuals who visit a bar often open a tab to keep the drinks coming. A South Paris, Maine man took the concept of “running up a tab” to a whole new level. He essentially opened a tab with a workers’ compensation insurance company and kept the benefit checks coming while he was working another job. He committed workers’ compensation fraud by claiming he was unable to drive while running his own wine distribution business. (He delivered wine while whining about his inability to work due to a purported on-the-job injury.)

 While working as a fuel oil delivery driver, the man from Maine purportedly hurt his head after falling from a truck. He qualified for workers’ compensation benefits and continued to receive the weekly checks from the Portland-based insurer. (And, the weeks turned into months. He was running up quite a tab while claiming he was unable to work or drive.)

The insurance company became suspicious and conducted surveillance. Investigators discovered that despite an alleged head injury, he was driving quite well. (He had started his own wine distribution business and was observed making deliveries to stores in two Maine counties.)

Several months later, the wine distributor stopped receiving workers’ compensation benefits. Up until that time, the driver had received $16,000 from the date of his alleged injury up until the first surveillance video, and another $10,000 after that time. (The insurance company cut off the flow of free money because he had imbibed too much.)

 After reviewing the surveillance footage and consulting with medical experts, the workers’ compensation insurer made a last call, signaling the end of this fraudster’s scam. The 53-year-old man from South Paris pleaded guilty to workers’ compensation fraud. He must pay more than $10,000 in restitution to close out his tab. If he pays up, he’ll serve only 30 days in jail. If not, he’ll serve 90 days in jail. (And, I’m guessing the relationship with his former employer is officially on the rocks. He’ll no longer foot the bill for his deceptive and whiny employee.)

Today’s “Fraud of the Day” is based on an article entitled, South Paris man found guilty of insurance fraud, must pay over $10,000 in restitution,” posted on WMTW.com on March 25, 2018.

AUGUSTA, Maine — A South Paris man has been found guilty of insurance fraud, the State Attorney General’s office announced Friday.

In a press release, Attorney General Janet Mills said that 53-year-old Daniel Reavis pleaded guilty to theft by deception from MEMIC, Inc., a workers’ compensation insurer based in Portland.

 

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.