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Insurance
firm's employees plead not guilty to fraud
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San Diego Union Tribune, May 17, 2006
SAN DIEGO - Two officers and six employees of a Massachusetts-based
firm accused of fraudulently filing workers' compensation claims,
including at least one in San Diego, pleaded not guilty Wednesday to
insurance fraud charges.
A San Diego County grand jury returned a 50-count indictment against
the defendants, all from Braintree, Mass., near Boston, on April 3.
Appearing for arraignment before Judge John Davidson were:
Thomas M. McGrath, 44, treasurer of National Independent
Contractors Association;
Eileen Rogantino, 42, president and secretary of NICA; [McGrath's
wife]
Wesley McClure, 46; [McGrath's brother in-law]
Daniel M. Curran, 53;
Mary Jayne Graham, 51;
Timothy F. Bergin, 36;
Andrew Rogantino, 46; [a relative of McGrath's wife, maybe her
brother] and
David B. Kenyon, 58.
"This major investigation was successful because of tremendous help
from the California Department of Insurance, with assistance from the
Employment Development Department and the State Compensation Insurance
Fund," said San Diego County District Attorney Bonnie Dumanis.
Prosecutors said McGrath and Eileen Rogantino used a San Diego County
insurance broker and applied for and received a workers' compensation
insurance policy from the San Diego District Office of the State
Compensation Insurance Fund in October 2002.
Over the next year, NICA reported 47 claims for allegedly injured
workers statewide, including at least one in San Diego County. The
workers included bicycle, motorcycle and motor vehicle couriers, said
prosecutor Ernie Marugg.
More than 300 boxes of evidence were seized after search warrants were
served in San Diego, Los Angeles and San Francisco last October.
"This company prided itself on malpractice," said California Insurance
Commissioner John Garamendi.
"Not only did the company file bogus workers' comp claims, but they
also ripped off SCIF by making SCIF pay out $600,000 in losses," he
alleged. "This type of fraud is deplorable and clearly illustrates the
peril that we all face because of some people's unscrupulous and
illegal actions."
Each defendant is charged with one count of conspiracy to commit
premium fraud, six counts of premium fraud and 43 counts of filing
false injury claims.
If convicted of all the felony charges, each defendant faces up to 59
years in state prison and a fine of $1.2 million.
"Workers' compensation fraud siphons millions of dollars each year from
honest stakeholders," said Donna Gallagher, who manages the State
Compensation Insurance Fund's Fraud Investigative Program.
"Our anti-fraud campaign is a priority and we applaud the San Diego
County District Attorney's Office for their aggressive fight on
workers' compensation fraud," she said.
All of the defendants were released on their own recognizance and
waived their right to be present at a May 31 status hearing.
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