Facebook Pictures’ Use Evolving in Workers’ Compensation Cases

Today’s post comes from guest author Brody Ockander, from Rehm, Bennett & Moore.

In the past, I have warned about the possible pitfalls of social media on a workers’ compensation claim.

However, the Nebraska Workers’ Compensation Court has never really ruled on Facebook in the context of discovery matters in a work comp claim, meaning how much access can your employer have to your Facebook account if you file a workers’ compensation claim? 

Recently, however, the Nebraska Workers’ Compensation Court (at least one judge) has taken the position that in order for your employer to gain access to photographs from your Facebook profile, it must “make a showing of the necessary factual predicate underlying [the] broad request for access.” In other words, your employer must have a decent reason to suspect that a certain photograph or something from your Facebook account has the potential to be relevant to the work comp case before the court will simply grant full access to your Facebook account to your employer.

Therefore, depending on your situation, your Facebook may be safe from your employer to some degree. However, this is a cautionary tale to remind you that even though your employer cannot simply have blanket access to all of your Facebook photos – at least according to one Nebraska judge – it does not mean that your Facebook photos or posts are necessarily safe from your employer gaining access to them at some point during your work comp case. I think the judge in this case takes a step in right direction, but you still must be aware that anything you put on Facebook may be subject to discovery (i.e., your employer may still possibly get access to it) at some point in the future.

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Medicines Made in India Set Off Safety Worries

Today’s post was shared by Gelman on Workplace Injuries and comes from www.nytimes.com

Pharmacuetical safety is now an international isue. Today’s post is shared from the nytimes.com/

NEW DELHI — India, the second-largest exporter of over-the-counter and prescription drugs to the United States, is coming under increased scrutiny by American regulators for safety lapses, falsified drug test results and selling fake medicines.

Dr. Margaret A. Hamburg, the commissioner of the United States Food and Drug Administration, arrived in India this week to express her growing unease with the safety of Indian medicines because of “recent lapses in quality at a handful of pharmaceutical firms.”

India’s pharmaceutical industry supplies 40 percent of over-the-counter and generic prescription drugs consumed in the United States, so the increased scrutiny could have profound implications for American consumers.

F.D.A. investigators are blitzing Indian drug plants, financing the inspections with some of the roughly $300 million in annual fees from generic drug makers collected as part of a 2012 law requiring increased scrutiny of overseas plants. The agency inspected 160 Indian drug plants last year, three times as many as in 2009. The increased scrutiny has led to a flood of new penalties, including half of the warning letters the agency issued last year to drug makers.

Dr. Hamburg was met by Indian officials and executives who, shocked by recent F.D.A. export bans of generic versions of popular medicines — such as the acne drug Accutane,…

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How Corporate Money Poisons “Independent” Medical Evaluations

Today’s post comes from guest author Jay Causey, from Causey Law Firm.

 

            Workers’ compensation claimants and their attorneys routinely confront the so-called “usual suspect” medical examiners —  those doctors whose practices chiefly involve examining multiple claimants per day, several days per week or month, always for an insurance carrier or governmental agency administering workers’ compensation, and who can reliably be counted on to find no diagnosis related to injury, little or no permanent impairment related to accepted conditions, and no requirement for further treatment nor any limitations applicable to work activity. In a litigation setting, it can often be shown that these doctors have little or no active medical practice and derive the bulk of their income from these forensic examinations, calling into question their lack of objectivity and probable bias. Most of the physicians who engage in this work are not necessarily leading figures in their practice areas, and are not well-regarded academicians in their field – – their principal credential is that they have simply been in the practice a long time.  In a litigated case the testimony of such physicians can often be overcome by the testimony of an attending physician who has treated the claimant for a long period of time or another examining physician with an equally or more plausible opinion that supports the injured or diseased worker.

            Consider, then, the threat to justice for injured workers when a long-established cohort of extremely well-credentialed defense medical experts, operating under the cover of one of the world’s most prestigious medical schools, has been engaged by the coal industry to defend against claims by miners crippled by black lung disease, and finds in the vast majority of cases no industrially-related disease.  These cases arise in the context of the federal black lung system, where cases mostly involve dueling medical opinions and judges rely heavily on the credentials of physicians to determine outcomes.  In a blockbuster report entitled Breathless and Burdened, the Center for Public Integrity has unveiled seeming massive corruption of medical opinion from corporate influence at Johns Hopkins Medical Institutions, where Peabody Energy and other coal companies direct workers with black lung claims to be evaluated. 

             For over 40 years, a small unit of radiologists at Johns Hopkins Medical School and hospital has generated fees from coal company evaluations that have enriched the institution and supported its work.  These physicians read x-rays as a part of their regular duties, but coal companies will pay a premium of up to ten times what a regular x-ray reading would cost.  And because of the longevity of these practitioners, with their credentials burnished by the iconic reputation of Johns Hopkins, their opinions in the processes of claim adjudication have become nearly unassailable.  Judges rely heavily on these opinions and regularly find that they swamp the evidence brought by miners from doctors not similarly credentialed.

              The Center’s report found that one particular physician – a 78 year-old radiologist named Paul Wheeler – in reviewing x-rays in 1500 cases since 2000 never found one instance of severe disease, whereas other doctors looking at the same x-rays found it in 390 cases, and that subsequent biopsies and autopsies of diseased workers frequently clearly proved Wheeler wrong.  Furthermore, the criteria this examiner used in determining the presence of black lung was contrary to that of government research agencies, textbooks, peer-reviewed scientific literature, and the opinions of many credentialed physicians outside Johns Hopkins, including the American College of Radiology’s task force on black lung disease.

             The Center’s review of thousands of cases evaluated at Johns Hopkins established that since 2000, miners lost more than 800 cases where at least one doctor found black lung on x-ray but Dr. Wheeler read it as negative.  It calculated that Wheeler found black lung in about 2% of the cases evaluated, and that in 80% of the films he read as positive, he saw only early stage of the disease, whereas other physicians found severe form of the disease in more than 750 films.  Despite all of this, Wheeler continues to lead the cohort of radiologists who toil in the Pneumoconiosis Section of Johns Hopkins amidst piles of files and paperwork bearing the letterhead of prominent corporate defense law firms and coal companies, churning out evaluations of miners, under the imprimatur of a prestigious institution, that are clearly resulting in the denial of many legitimate claims.   

Photo credit: Marcos Telias / Foter.com / CC BY-NC-ND

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$46 Million Stolen: 2013’s Top Ten Workers’ Compensation Fraud Cases

Professor Leonard T. Jernigan Jr. has compiled a list of 2013’s Top 10 Workers’ Compensation Fraud Cases

Today’s post comes from guest author Leonard Jernigan, from The Jernigan Law Firm.

Employer Fraud Cases (9):$44,064,492.00
Employee Fraud Cases (1): $1,500,000.00
Total: $45,564,492.00

Every year we hear about fraud in Workers’ Compensation cases and the public believes the fraud is employee driven. However, in 2009 I began tracking the Top Ten Fraud Cases and 100% of the Top Ten between 2009-2012 involved employers or shady characters posing as legitimate businesses. The amount of employer fraud is staggering. In 2013 one employee fraud case did crack the Top Ten, so the record is now 49-1 (employer fraud v. employee fraud) over the past five years.

  1. Florida: Owners of Diaz Supermarkets in Miami-Dade are Accused of $35 Million Fraud (4/16/13)

    John Diaz and his wife Mercedes Avila-Diaz owned and operated four supermarkets in the Miami-Dade area. They have been arrested and accused of workers’ compensation fraud and other fraudulent transactions totaling $35 million. One business they operated had no coverage for employees for ten years. They allegedly engaged in a scam to help subcontractors obtain false certificates of insurance that allowed the subs to work for general contractors who required the certificates.

  2. California: Hanford Farm Labor Contractor Convicted of Fraud in the Amount of $4,195,900 (12/6/2013)

    Richard Escamilla, Jr.

    Richard Escamilla, Jr. (47), owner of ROC Harvesting, misrepresented information to workers’ compensation insurance carriers by using new business names to obtain insurance and avoid providing a claim history. Escamilla pleaded guilty on October 29th and was sentenced to pay restitution of $4.1 million and serve six years in prison.

  3. Michigan: Insurance Executive Embezzled $2.6 Million from Workers’ Comp TPA (06/06/2013)

    Jerry Stage

    Jerry Stage (67), the former CEO of a non-profit workers’ compensation insurance company, and George Bauer (55), the bookkeeper, both pleaded guilty to embezzling from the Compensation Advisory Organization of Michigan (CAOM) for more than a decade. Mr. Stage embezzled $2.6 million from the company and conspired with Mr. Bauer to cover up the embezzlement.

  4. California: Employee Wasn’t Wheelchair Bound After All – Fraudulently Took $1.5 Million in Benefits (8/9/13)

    Yolandi Kohrumel

    Yolandi Kohrumel, 35, claimed for nine years that she was wheelchair bound after complications from toe surgery, but after she had collected $1.5 million in benefits it was revealed her claim was false. Her father, a South African native, was also engaged in the scam. Both pleaded guilty to insurance fraud, grand theft and perjury. Ms Kohrumel was sentenced to one year in jail, plus restitution.

  5. California: Father and Son Landscapers Accused of $1.45 Million in Insurance Fraud (5/7/13)

    Sunshine Landscaping

    Jesse Garcia Contreras (57) and Carlos Contreras (33), who operate a Thousand Palms landscaping business, are accused of committing $1.45 million in insurance fraud. They are accused of defrauding the California State Compensation Insurance Fund by misclassifying employees from January 2008 to March 2012. Mr. Jesse Contreras is the president and CEO of Sunshine Landscaping and his son is Director of Accounting. If convicted, they each face up to 19 years and 8 months in prison.

  6. Florida: Workers’ Compensation Check Cashing Operation Charged with $1 Million in Fraud (2/27/13)

    As a result of its investigation of I&T Financial Services, LLC, a company that was allegedly set up to execute a large scale check cashing scheme for the purpose of evading the cost of workers’ compensation coverage. Domenick Pucillo, the ringleader of the fraud scheme, was arrested and charged with filing a false and fraudulent document, forgery, uttering a forged instrument, and operating an unlicensed money service business. If convicted on all charges, he faces up to 45 years in prison. $1 million was seized during this investigation.

  7. West Virginia: Coal Company Contractor in Mingo County Caught in $405,000 Scam to Avoid Workers’ Comp Premiums (11/6/13)

    Bank of Mingo

    Jerame Russell (50), an executive with Aracoma Contracting, LLC, a company that provided labor to coal companies on a contract basis, entered a guilty plea to a scam that involved funneling over $2 million through a local bank to pay employees in cash, thus avoiding payroll taxes and $405,000 in workers’ compensation premiums. Aracoma also bribed an insurance auditor to cover up its true payroll.

  8. Ohio: Roofing Business Owners Guilty of $283,592 in Workers’ Comp Fraud (7/30/2013)

    Frederick Diebert

    The owners of Triple Star Roofing were found guilty of fraud on July 15 for failing to report payroll to the Ohio Bureau or Workers’ Compensation(BWC). The company failed to report to the BWC from 2004 to 2008, resulting in under-reported premiums of $283,592.

  9. Florida: Owner of Staffing Company arrested for $130,000 in Workers’ Comp Fraud

    Preferred Staffing of America, Inc.

    The owner of Preferred Staffing of America, Inc., a temporary staffing agency in Tampa, has been arrested for allegedly running an organized workers’ compensation fraud scheme. Preferred Staffing’s owner misled clients into believing that his company was a licensed professional employer organization (PEO) and could provide workers’ compensation insurance coverage. Employers were reportedly charged more than $130,000 for workers’ compensation insurance and other services that were never provided.

For more information, contact: Leonard T. Jernigan, Jr. Adjunct Professor of Workers’ Compensation N.C. Central School of Law The Jernigan Law Firm 2626 Glenwood Avenue, Suite 330 Raleigh, North Carolina 27608 (919) 833-0299 ltj@jernlaw.com www.jernlaw.com @jernlaw

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Wal-Mart & McDonald’s: Passing the Buck to Taxpayers

Today’s post comes from guest author Charlie Domer, from The Domer Law Firm.

Came across this post today: “How McDonald’s and Wal-Mart Became Welfare Queens.”  News like this has become so commonplace that you almost accept it with a shrug.   Yeah, big box stores and fast food chains are paying their workers cruddy wages, forcing them to go on state health insurance and food stamp assistance.  Oh well.  Move along.  Nothing to see here.

But the outrage should exist.  These stories make my blood boil.  Many of these companies are making massive profits.  You’re telling me you can’t pay a living wage?  All of us, as taxpayers, are helping pad the the coffers of these companies.  By not providing sufficient wages or health care, the actual taxpayers serve as the necessary social safety net for these workers.  Is that really how we want our society and country structured?

Admittedly my experience is anectodal, but I see a number of these workers in my practice–from the greeters at Wal-Mart to those flipping burgers at McDonald’s.  Many are making a minimum hourly wage of $7.25.  No matter how hard they work (and, in my experience, some of these fast food and retail workers are the hardest workers out there, in light of their work condition), they cannot get ahead or make enough to avoid the necessity of seeking food stamp assistance or of searching for the local food pantry.  

Corporations simply should not be able to get rich on the public’s back.  As taxpayers, we continue to allow this grossly one-sided equation to continue.

 

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After Bangladesh Factory Collapse, Bleak Struggle for Survivors

Today’s post was shared by Gelman on Workplace Injuries and comes from www.nytimes.com

SAVAR, Bangladesh — Inside the single room he shares with his wife and young child, Hasan Mahmud Forkan does not sleep easily. Some nights he hears the screams of the garment workers he tried to rescue from the wreckage of the Rana Plaza factory building. Or he dreams the bed itself is collapsing, sucking him down into a bottomless void.

A few miles away, at a rehabilitation center for the disabled, Rehana Khatun is learning to walk again. She lost both legs in the Rana Plaza collapse and worries that she is not improving because her prosthetic replacements are bulky and uncomfortable. She is only 20 and once hoped to save money so she could return to her village and pay for her own wedding.

“No, I don’t have that dream anymore,” she said, with a cold pragmatism more than self-pity. “How can I take care of a family?”

Eight months ago, the collapse of Rana Plaza became the deadliest disaster in the history of the garment industry, and many of the survivors still face an uncertain future. The shoddily constructed building pancaked down onto workers stitching clothes for global brands like Children’s Place, Benetton, C & A, Primark and many others. Workers earning as little as $38 a month were crushed under tons of falling concrete and steel. More than 1,100 people died and many others were injured or maimed.

But while the Rana Plaza disaster stirred an international outcry — and shamed many international clothing companies…

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“60 Minutes” Misses the Mark on Social Security Disability

Today’s post comes from guest author Kristina Brown Thompson, from The Jernigan Law Firm.

What happens when a major journalism program runs a program without interviewing both sides? You get something like what “60 Minutes” aired in early October in “Disability, USA.” It’s one of the media’s favorite topics, “exposing” disability fraud on the part of the claimant. But how much truth is there to the allegations made on “60 Minutes”?

After watching the show, the viewer is lead to believe that almost anyone with any medical condition could be approved for Social Security Disability. You hear from an administrative law judge that the standards are too lax. However, over 66% of all disability claims are initially denied. Thereafter, only about 10% win disability benefits on appeal. The application and appeal process alone takes months, if not years. This sure doesn’t sound like an easy way to survive. Even if benefits are ultimately awarded, they are taxable and paid only on a monthly basis with the average disability payment of about $1,100.00.

While it’s true the number of disability claimants has increased, this is hardly surprising. Overall, we have an aging population which increases the ratio of disabled claimants. Likewise, with jobs scarce, those with disabilities are having an increasingly difficult time finding work.

It’s very disappointing that no one at “60 Minutes” took the time to interview a single disability applicant. If they had taken the time, they would have learned that the application is an arduous process. Failure to present your medical records or respond within strict timeframes, results in an automatic denial. Recently, one of our workers’ compensation clients reported that he underwent two separate disability applications and four appeals (cumulatively) before finally being approved in 2013. He has been out of work since 2006.

For more information, check out “Just the Facts” as well as this article published by the National Organization of Social Security Claimant Representatives in response to “Disability, USA.”  

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Temporary Work, Lasting Harm

Today’s post was shared by Jon Gelman and comes from www.propublica.org

Ninety minutes into his first day on the first job of his life, Day Davis, pictured above, was called over to help at Palletizer No. 4 at the Bacardi bottling plant in Jacksonville, Fla. Above is a composite image of the times Davis is seen in a surveillance video before an all-too-common story for temp workers unfolded.

A version of this story was produced by Univision and will air tonight at 6:30 p.m.

JACKSONVILLE, Fla. – This was it, he told his brother Jojo. He would finally be able to pay his mother back for the fender bender, buy some new shoes and, if things went well, maybe even start a life with his fiancee who was living in Atlanta.

After getting his high school diploma, completing federal job training and sending out dozens of applications, Day Davis, 21, got a job. It was through a temp agency and didn’t pay very much, but he would be working at the Bacardi bottling plant, making the best-selling rum in the world.

Davis called his mother to tell her the good news and ask if she could pick him up so he could buy the required steel-toe boots, white shirt and khaki pants and get to the factory for a 15-minute orientation before his 3 p.m. shift.

Word spread quickly through the family. “Me and my brother was like, ‘Don’t mess up now, you got to do good, don’t mess up,’ ” said his younger sister, Nia.

It was a humid 90 degrees as Davis walked into Bacardi’s Warehouse No. 7 to the rattle of glass bottles,…

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