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An individual who fraudulently claimed $68,502 in workers’ compensation while still earning an income through his car detail business has been convicted and ordered to repay the total amount.
A 50-year-old man was sentenced in the Frankston Magistrates Court on Thursday, 22 August 2024, after pleading guilty to a single charge of fraudulently obtaining payments while still earning an income.
The court heard the man first began receiving workers’ compensation back in February 2021 after lodging a claim for a mental health injury due to being a victim of workplace bullying while working as a factory hand, yard worker, and driver at a pool heating company.
The man went on to receive weekly payments until January 2022, when they were stopped after an investigation by WorkSafe revealed he had been working for his own business.
He was then convicted and fined $10,000 in addition to the restitution order.
Return to Work Victoria executive director Jason Lardelli said the operation of fraud, while relatively rare, was deeply disappointing as it continues to take resources away from injured workers who needed support.
“Workers’ compensation provides crucial support to people recovering from workplace injuries or illness and is such an important part of their recovery and return to work,” said Lardelli.
The court heard that while the man was committing the fraud, he continued to sign certificates of capacity declaring that he had not engaged in any form of employment and/or self-employment.
However, various bank records highlighted the falsehoods of the man’s certificates, which had direct references to vehicles to accounts in the man’s name from a number of businesses. Four victims also came forward with evidence that they had, in fact, paid him for detailing work on their vehicles.
More evidence was brought to the light when a surveillance investigation report provided to the court included footage of the man cleaning a car interior after it arrived at his premises back in December 2021.
“To deliberately deceive the system for personal gain is unacceptable, and anyone who does this risks prosecution and serious penalties,” said Lardelli.
Around this time last year, WorkSafe terminated 37 fraudulent claims with a combined projected lifetime cost to the workers’ compensation scheme of $20.64 million in the 2022–23 financial year.
On top of the 37 people, another 25 people were prosecuted during the period for similar matters, with restitution, fines and costs totalling almost $1 million.
At the time, WorkSafe executive director of insurance Roger Arnold said: “Fraud is proportionally very low within Victoria’s workers’ compensation scheme, but there’s always a shifty few who think they’ll get away with breaking the law.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
