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Construction worker has an accident while working

There are basically four ways an individual can be prosecuted for committing workers compensation fraud: 1) faking a work injury; 2) secretly working while collecting workers’ compensation benefits; 3) collecting benefits from multiple employers; and, 4) fraud rings. Today’s fraudster from Midland, Texas chose number two to steal more than $6,000 from the Texas Department of Insurance Division of Workers’ Compensation.

The Travis County man claimed that he had suffered an on-the-job injury while working as an appliance repairman for a Midland-based company. (He said that the injury prevented him from working – yeah, right. You know where this is going.)  

 Texas Mutual approved the claim and began paying out income benefits to the supposedly injured appliance repairman. But, it wasn’t long before the insurance company found out that the appliance repairman was working as a self-employed appliance repairman. (He probably wanted to branch out on his own, but didn’t want the risk of going it all alone. So, he thought he’d take advantage of his employer.)

The appliance repairman was convicted of workers compensation fraud and was sentenced to a misdemeanor. He got one day in jail and paid $6,049 back to the insurance company that awarded him workers’ compensation benefits. (Most likely the only injury this man incurred was to his pride. Get back to work buddy!)

 Today’s “Fraud of the Day” is based on an article, “Texas Man Convicted of $6K Workers’ Compensation Fraud,” posted on InsuranceJournal.com on October 8, 2019.

Texas Mutual Insurance Co. reported that a Travis County district court has sentenced Joe D. Lozano, Sr. of Midland, Texas, on workers’ compensation fraud-related charges.

Lozano reported a job-related injury while working as an appliance repairman for A & A Appliance in Midland and claimed he was unable to work because of his injury. Texas Mutual began paying income benefits to him, but then discovered Lozano was working as a self-employed appliance repairman.

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.