With workers compensation schemes/underwriters experiencing increasing challenges, costs and resulting need to increase workers compensation insurance premiums, a recent court decision represents ongoing focus on fraudulent workers compensation activities. A Victorian business owner has been sentenced to 22 months in prison for workers compensation fraud and is also required to repay $350,000 of illegal workers compensation payments.
After serving a prison sentence, a business owner who engaged in years of fraudulent workers’ compensation claims, while successfully operating a childcare facility, will be required to repay $350,000.
Samer Ahmed experienced a workplace injury in 2005 while serving as the principal of a Melbourne Islamic college, resulting in a major depressive disorder and anxiety. In March 2006, he submitted a workers’ compensation claim, which was approved within a month, leading to regular compensation payments. Ahmed, now 54, was obligated to provide periodic certificates of capacity, including declarations of his medical condition, signed by healthcare professionals.
He asserted that he had not been employed since March 2006, spent most of his time at home, and considered himself completely disabled and unable to work, according to WorkSafe. Approximately a month after the compensation payments began, Ahmed and his family purchased a property in Glenroy and spent the following two years converting it into a childcare center. During this period, Ahmed hired contractors for renovations, obtained planning permits, and even served as the director of the childcare business.
Between June 2009 and October 2014, when the business was sold at a significant profit, Ahmed actively participated in managing its operations. At one point, he was even listed as the payroll officer for the business. His involvement encompassed staff management, superannuation payments, procurement of supplies and equipment, and the submission of a financial application to a major bank on behalf of the business.
However, during this time, he continued to receive over $430,000 in workers’ compensation payments, purportedly due to his inability to work. He also undertook voluntary work in 2015, including conducting a halal audit at Rio Tinto.
Ahmed’s fraudulent activities unravelled when he mistakenly sent incorrect documents to his insurance company, prompting an investigation into his eligibility for WorkCover benefits.
A jury convicted him on seven charges of obtaining financial advantage by deception.
County Court Judge Scott Johns, in his sentencing on Wednesday, remarked that Ahmed’s financial situation was far from dire during the period of his fraudulent activities. Judge Johns ordered Ahmed to repay $350,000, noting that although he currently receives a disability pension of $1,000 every fortnight, he possesses substantial earning potential.
Ahmed, a father of four, must serve a minimum of eight months of his prison sentence before becoming eligible for parole.
Roger Arnold, WorkSafe’s insurance director, described Ahmed’s fraud as one of the most egregious cases he had encountered, emphasizing Ahmed’s blatant falsehoods to numerous medical experts and the prolonged duration of his deceit.
Arnold stated, “Our scheme exists to provide support and treatment to workers who have suffered mental or physical injuries, and those who attempt to defraud it will be held accountable”.
If you believe your injured worker/s to be conducting unlawful activities whilst on a workers compensation, please contact our team to discuss options.
Source: Australian Associated Press
Title: Business owner jailed for workers compensation fraud
Read Time: 5-10 minutes