November 19, 2018-United States Attorney Thomas L. Kirsch announced today that 27 members of the Indiana/Kentucky/Ohio Regional Council of Carpenters will pay over $500,000 in restitution after being sentenced for one count of health care fraud each. “According to the documents filed in this case, members of the Indiana/Kentucky/Ohio Regional Council of Carpenters illegally gained assets from the Indiana/Kentucky/Ohio Regional Council of Carpenters Welfare Fund, a union health care benefit program. The defendants requested reimbursement of medical expenses by submitting to the carpenter’s welfare fund a fraudulent claim form and a copy of an un-negotiated personal check for reimbursement. These documents gave the appearance that the defendants had paid a reimbursable health care expense. Claims were processed from the union welfare fund reimbursing the defendants for these health care expenses that were never actually incurred” US Attorney Kirsch stated at the time the charges were filed. The names of the individuals were not released and the specific sentence for each defendant was not detailed.
U.S. Attorney Kirsch said, “Both the U.S. Department of Labor’s Office of Inspector General and Employee Benefit and Security Administration take health care fraud seriously. To be able to have restitution ordered in excess of $500,000 greatly enhances the reliability of these plans.”
“We will continue to work with the U.S. Department Labor’s Employee Benefit and Security Administration and our law enforcement partners to protect the integrity of employee benefit plans,” stated James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“The Employee Benefits Security Administration will continue to investigate such crimes aggressively on behalf of workers nationwide as part of the Department’s mission to protect the rights of America’s workers,” said EBSA Regional Director Jeffrey A. Monhart, in Chicago.
These cases were investigated by the United States Department of Labor, Office of the Inspector General and the Employee Benefits Security Administration and prosecuted by United States Attorney’s Office, Northern District of Indiana.