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Two New Yorkers Facing Prison Time for Long-Term Fraud in Comp Claims

Fraudulent workers compensation cases are nothing new but they are still surprising when details are revealed. Recently, a Rochester woman was found to have collected $245,900 in compensation benefits after she provided her insurance company with fake prescription drug claims. In 2006, Sarah L. Northern incurred a work injury. She consulted her own insurance company, stating she didn’t realize the years of prescription costs she incurred due to the work injury were covered by insurance. She claimed she had paid cash for the medication and the insurance agent subsequently advised her that she could be reimbursed if she submitted receipts of payments made. Northern submitted paperwork for worker’s compensation related prescriptions she claimed to have purchased between 2006 and 2009. It was found during an investigation that Northern’s insurance company, Kemper Insurance, paid out money for prescriptions the woman never received. Northern was arrested and could face up to 15 years in prison if convicted.

Another New Yorker, this time a Sullivan County man, was arrested for running a home repair and painting business from his home during the time he was collecting worker’s compensation benefits. Homer Spangler received $7,470 worth of benefits after submitting documentation to the New York State Insurance Fund stating he was not physically able to work. It was during a routine check investigators found Spangler running his own business while collecting permanent partial disability benefits. The compensation benefits stemmed from a job-related injury suffered in 1998. Spangler was released on bail pending his November 15 trial date.