Fraud...It Cuts Both Ways!

There is a fraud component of the Louisiana Workers' Compensation Act, and it indicates, "It shall be unlawful for any person, for the purpose of obtaining or defeating any benefit or payment under the provisions of this Chapter, either for himself or for any other person, to willfully make a false statement or representation."

Typically, fraud allegations are directed against injured workers.  The most common scenario occurs when an injured worker makes the representation that she is unable to work in any capacity, and because of that representation she is receiving a weekly check from the insurance company.  If that injured worker is receiving that weekly check while simultaneously working and receiving wages, she has likely violated the law, and a fraud allegation will probably soon be made.

An overlooked fact within that law is that the fraud allegation can also be made against an employer or insurance company. If an employer willfully makes a false statement for the purpose of defeating benefits that would be owed to an injured worker, then that employer likely violated the law, and a fraud allegation will probably soon be made. An example of a false statement made by an employer could be when an employer denies that an injured worker was its employee, even though the employee was working for the employer.

It cuts both ways!

The penalties associated with a judicial finding of fraud include monetary fines up to $10,000.00, termination of all benefits, civil penalty up to $5,000.00, and imprisonment up to 10 years.

It is vitally important that you always relay truthful information about your claim. If your employer has made a false statement for the purpose of defeating your claim for benefits, contact us today. We will gladly assist you and pursue all benefits you are owed.