Redding forestry technician arraigned for alleged workers’ comp fraud scheme

News: 2020 Press Release

For Release: September 23, 2020
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Redding forestry technician arraigned for alleged workers’ comp fraud scheme

REDDING, Calif. — Lance Steven Pasalich, 23, was arraigned yesterday on multiple felony counts of insurance fraud and grand theft after allegedly defrauding his insurer to receive over $8,600 in disability payments he was not entitled to receive. The alleged scheme could potentially have cost the insurer over $55,000 in claim expenses.

An investigation by the California Department of Insurance revealed Pasalich submitted a workers’ compensation claim for a slip-injury he sustained while working for a land management company in Shasta County. Pasalich was working as a seasonal forestry technician responsible for conducting large surveys to prevent wildfires. 

Following the injury to Pasalich’s knee, his employer’s workers’ compensation insurer provided him with temporary total disability benefits and treatment to help him return to his job. The insurer instructed Pasalich, multiple times, that he was required to report any additional work or income he earned while receiving disability benefits. Temporary total disability benefits are intended to aid recovering injured workers who need additional time to recover or receive a permanent disability rating.

Investigators followed Pasalich and observed that he secretly resumed working as a forestry technician, but for a different company. Pasalich repeatedly neglected to disclose his resumption of forestry work. By secretly working while receiving disability payments, Pasalich was able to simultaneously receive disability benefits and work income.

The Shasta County District Attorney’s Office is prosecuting this case.

 

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The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

                                                                                                                                            

Source: California Department of Insurance.

http://www.insurance.ca.gov/0400-news/0100-press-releases/2020/release090-2020.cfm

California Department of Insurance issued the above Press Release on September 23, 2020.

Former Union President Sentenced for Violent Extortion

Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Wednesday, September 23, 2020

Former Union President Sentenced for Violent Extortion

The former president of Iron Workers Local 395 was sentenced today to 42 months in prison for his role in organizing a brutal assault on a group of non-union ironworkers in Dyer, Indiana.

The attack, which left multiple workers with serious injuries, was part of an effort to obtain a contract for Local 395 to assist with the construction of the Plum Creek Christian Academy, a school affiliated with the Dyer Baptist Church.

Acting Assistant Attorney General Brian C. Rabbitt of the Department of Justice’s Criminal Division, Special Agent in Charge Irene Lindow, Chicago Regional Office, U.S. Department of Labor, Office of Inspector General (DOL-OIG) and Special Agent in Charge Paul Keenan of the FBI’s Indianapolis Field Office made the announcement.

Jeffrey Veach, 57, had earlier pleaded guilty to one count of extortion conspiracy, along with co-defendant Thomas Williamson Sr., 69. The sentence was handed down by U.S. District Court Judge Theresa Springmann of the Northern District of Indiana. Williamson is scheduled to be sentenced separately by Judge Springmann on Dec. 15.

Veach resigned as president of Local 395, following his guilty plea in January. Under federal law, Veach will be barred from holding any union position for at least 13 years following the end of his prison sentence.

Pursuant to his plea agreement, Veach admitted that in January 2016, he learned that D5 Iron Works – a non-union ironworking company from Illinois – was performing work for the Dyer Baptist Church, in Local 395’s “territory.” On the morning of Jan. 7, Veach and Williamson visited the construction site in order to persuade the D5 workers to sign up with the union or stop work on the site.  When they were rebuffed, Veach brought rank-and-file members of Local 395 to the construction site later that day.  At Veach’s direction, the union members conducted a coordinated attacked on the D5 workers.  The victims were beaten with fists and loose pieces of hardwood.  As a result of the attack, one of the workers sustained a broken jaw that required several surgeries and hospitalization.

The DOL-OIG, FBI, and Dyer Police Department investigated the case.  Trial Attorneys Alexander Gottfried and Robert Tully of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.  The Organized Crime and Gang Section’s Labor Unit supports federal criminal prosecutions in cases involving labor-management relations, internal union affairs, and the operation of employee pension and health care plans.  Assistant Chief for Labor-Management Racketeering Gerald Toner provided critical assistance in the prosecution of this case.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Topic(s): 
Violent Crime
Component(s):
Criminal Division
Criminal – Organized Crime and Gang Section
Press Release Number: 
20-991
   Updated September 23, 2020

                                                                                                                                            

Source: U.S. Department of Justice.

https://www.justice.gov/opa/pr/former-union-president-sentenced-violent-extortion

U.S. Department of Justice issued the above News Release on September 23, 2020.