Kentucky

Office of Insurance
Jefferson County Insurance Fraud Charges
Press Release Date: Tuesday, October 30, 2007
Contact Information: Contact: Ronda Sloan
502-564-6098
502-330-1804 (cell)

FRANKFORT, Ky. (Oct. 30, 2007) - Three Jefferson County residents
were indicted Oct. 23 on insurance fraud charges after allegedly filing
inaccurate payroll data with a workers' compensation insurance carrier,
resulting in an underpayment of more than $268,000 in premiums.
In addition, the trio formed a second company, placed the majority of
workers on that payroll, and did not purchase workers' compensation
insurance. When an injury occurred, the hurt worker allegedly was moved
within a few days to the payroll of the entity with insurance, and a
workers' compensation claim was filed.

Daniel English, 43, of Fisherville, and Thomas English, 40, and Beth Ann
McGill, 47, both of Crestwood, each were charged with one felony count
of insurance fraud. The case was investigated by the Kentucky Office of
Insurance (KOI) Fraud Investigation Division.
According to the insurer, Kentucky Employers' Mutual Insurance (KEMI),
the companies involved were The Framing Corp. and The Second Framing
Corp. The underpayment of premiums occurred from March 2001 to June
2002.

"Workers' compensation premiums are a large part of the cost of doing
business, and the total payroll of a company is a major factor in
determining the premium," said KOI Executive Director Julie Mix McPeak.
"We aggressively pursue cases like this because fraud by a relatively few
companies raises the cost of workers' compensation insurance for all
businesses in Kentucky."

If convicted, the defendants face a maximum penalty of five years in
prison, a fine of $10,000, or both.

The Office of Insurance is an agency of the Department of Public
Protection in the Environmental and Public Protection Cabinet.

http://www.kentucky.gov/Newsroom/doi/PressRel103007.htm