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Media Advisory: April 18, 2008
Two Northeast Ohio Medical Providers Punished for Fraud
Lake County Woman to Serve Three Years in Prison; Canton Chiropractor Fined
COLUMBUS – A Lake County woman was immediately taken into custody today to begin serving a three-year prison sentence for workers’
compensation fraud related to violating probation on past charges of fraudulent billing.
In April 2003, Pegi Dickson of Painesville Township pled guilty to a felony count of workers’ compensation fraud, one count of aggravated
theft and one count of grand theft. At that time, Cuyahoga County Common Pleas Court Judge Richard J. McMonagle sentenced her to five years
probation with conditions that included she never again participate in any health-care industry or related job. McMonagle also ordered Dickson
to repay BWC and two medical insurance companies $200,000 in restitution.
The Ohio Bureau of Workers’ Compensation’s (BWC’s) special investigation department (SID) with the Cuyahoga County Probation Department recently
discovered that Dickson was a high-level employee of Gary L. Stabler and the Concord Family Medical Practice, located in Painesville. Through
investigatory interviews and an analysis of financial records, BWC investigators also found that Dickson has actively concealed her work activity
and earnings to prevent or reduce court ordered payments for restitution.
Upon hearing evidence, McMonagle ordered Dickson be immediately taken into custody, processed and forwarded to the Marysville Reformatory for
Women, where she will serve the original term of three years.
“This case is evidence that workers’ compensation fraud will not be tolerated,” said SID Director Tom Wersell. “By holding the offenders
accountable, we can ensure that Ohio’s employers, injured workers and medical providers are receiving the services they expect and deserve.”
In a separate case, Canton area chiropractor, Dr. Jay Smith, pleaded guilty in Franklin County Common Pleas Court to one count of obstruction
of justice, a fifth-degree felony. He admitted to billing for ultrasound treatments while actually only administering hot pack treatments to
patients. SID investigators also determined Dr. Smith directed his patients to provide false information to agents investigating the case.
The court ordered him to pay restitution and investigative costs totaling $11,478. Dr. Smith paid the fine at his April 17, 2008, sentencing.
BWC’s SID is the agency’s enforcement section which investigates fraud in Ohio’s workers’ compensation system. In FY 2007, the SIU closed nearly
3,000 investigations and referred 301 subjects for criminal prosecution, securing 111 indictments.
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Ohio Bureau of Workers’ Compensation
30 W. Spring St. | Columbus, Ohio 43215-2256
1-800-OHIOBWC | ohiobwc.com
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