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FOR MORE INFORMATION CONTACT: Tammy Cavender (573)
751-7500
FOR IMMEDIATE RELEASE: June 20, 2006
Workers’ Compensation’s Fraud and Noncompliance Unit Receive Awards
Jefferson City, MO – Further proof of the state’s commitment to preserve the benefits of the workers’ compensation program are illustrated by the Fraud and Noncompliance Unit (FNU) of the Missouri Department of Labor and Industrial Relations’ Division of Workers’ Compensation. The FNU received the 2005-2006 Investigative Unit of the Year award, and one of the unit’s members received the 2005-2006 Investigator of the Year award from the Missouri State Investigators Association last month.
The FNU’s performance measures established following Governor Blunt’s call to reduce fraud and abuse in state government helped pave the way to earn the honor of Investigative Unit of the Year and attain several accomplishments during 2005. Achievements include referring 550 cases to the Attorney General’s Office for prosecution (344 more than 2004), obtaining 35 criminal convictions, assessing $823,119.77 ($265,000 more than 2004) in statutory penalties, paying $324,800 in restitution to victims and decreasing the average number of days to complete an investigation from 154 to 81 in 2005.
Byron Klemme, Investigator III with the FNU for the last eight years, was named 2005-2006 Investigator of the Year. During the past year, Klemme conducted 119 criminal investigations and his unit investigated 551 allegations. Klemme averaged only 66 days to complete an investigation, 15 days less than the average of the unit. Investigations by Mr. Klemme and his section resulted in 14 successful prosecutions, 84 deferred prosecution agreements and $216,334.66 in statutory penalties.
“These awards reflect the commitment of Missouri and the FNU staff to investigate and refer workers’ compensation fraud and noncompliance,” said Rod Chapel, director of the Missouri Department of Labor and Industrial Relations. “Missouri has proven to be a strong force in the area of workers’ compensation investigations.”
The FNU is responsible for investigating all allegations of workers’ compensation fraud and noncompliance throughout the state. The unit investigates allegations of fraud by employees, employers, attorneys, insurers or physicians. Noncompliance is the failure by employers to carry workers’ compensation insurance, or to post notice of workers’ compensation at the workplace. Appropriate cases of fraud and noncompliance are referred to the Attorney General’s Office for prosecution.
For more information regarding the FNU or to report workers’ compensation fraud and noncompliance, visit our website at http://www.dolir.mo.gov/wc/fraud/ or call (800) 592-6003.
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