The Louisiana Workforce Commission (LWC) announced yesterday that two people, an agent and an employer, were arrested on workers’ compensation fraud charges, after an investigation led by the Office of Workers’ Compensation (OWC). Agents of the Louisiana Attorney General’s Office arrested the employer on October 20th, after the OWCA referred the case for criminal investigation. Investigators say he had willfully failed to provide workers’ compensation insurance to employees and failed to pay their medical bills. After an employee was injured and discovered that the company did not have coverage, the employee filed suit against his employer. A workers’ compensation judge ordered the employer to pay approximately $61,900 in unpaid indemnity benefits, medical bills, mileage reimbursement, legal fees and other penalties. He was booked on the fraud count at the St. Tammany Parish prison.
The agent, in an unrelated case, had taken over $2,000 from a business owner, supposedly to applied toward the purchase of a workers’ comp policy, but the agent never did so. He surrendered to attorney general’s agents and was booked in Jefferson Parish.
Read the full release via LWC here.