Fraud Tag

Another Employer Fraud Scheme And Another Arrest

A Kentucky woman extradited to New York now faces serious workplace injury fraud charges, but are these kinds of cases the real problem in what many say is a broken system?

According to New York State Inspector General Catherine Leahy Scott, 47-year-old Sheryl Colson, of New Concorde, began receiving her mother’s workers’ compensation checks in 2011, because the self-insured Orange-Ulster Board of Cooperative Educational Services did not verify the former nurse’s death. Prosecutors allege that Ms. Colson, who controlled her late mother’s estate, cashed $400 monthly checks from January 2011 to January 2013, using the funds to pay bills, eat out at restaurants, and buy “products from an Indiana company specializing in the production of hand-blown glass pipes and other smoking devices.”