Workers Comp Consultant Convicted of Fraud

A consultant based on South Carolina who specialized in helping employers reduce Workers Compensation insurance charges has been convicted of fraud in federal court. Robert A. Kohn of Charleston, South Carolina, was found guilty of submitting fraudulent payroll information to Companion Property & Casualty for his client, Knight's Services, a pipe-fitting contractor in Charleston.

This is, of course, a black mark on the industry of which I am a part, but it is fortunately a notable exception. Most consultants in this field (that I'm aware of, at least) provide ethical and professional services. But as in every field, there are always some bad apples.

Still, this story illustrates the need for some regulation and oversight of our industry. At the moment, no state licenses or regulates consultants on Workers Compensation premium reduction. I have drafted model legislation here in the state of Illinois that would provide such regulation, but at the moment it has attracted no interest from the legislature.

This is not the first time there have been unscrupulous operators in this field, and it surely will not be the last. Employers who are interested in having a review of their Workers Compensation costs performed would be well advised to check carefully into the background and credentials of any consultant who offers to save them money.

A good consultant can save you a lot of money. A crooked one can involve you in insurance fraud.

New Book Reviewed at AllBusiness.com

My newest book, Workers Compensation: A Field Guide for Employers, has received a very nice review in AllBusiness.com. Take a look at the review here.