Former Virginia claims manager pleads guilty to embezzlement

Advertisement

The former claims manager of a Virginia program to help children with disabilities faces more than a decade in prison after admitting to taking $784,000 through fraudulent claims.

Iris F. Allen, 44, of Richmond, Va., plead guilty in federal court Feb. 8 and will face sentencing May 14, according to the United States Attorney for the Eastern District of Virginia. Allen was a former claims manager at the Virginia Birth-Related Neurological Injury Compensation Fund, also known as the Virginia Birth Injury Fund (BIF).

Created by the Virginia General Assembly in 1987, BIF provides lifetime medical benefits to participating infants born with severe birth-related neurological injuries and is funded through physicians and hospitals.

Allen pled guilty in court to health care fraud and aggravated identity theft, stemming from a scheme she began in July 2006, according to officials.

During her employment with BIF from 2004 to 2009, Allen submitted false invoices to the fund for payment to one of two companies she created: Paratransit Company of Virginia and Dandridge Design and Construction.

Both companies were listed as the vendor or contractor on numerous false or inflated invoices.

Allen amassed a total amount of $1 million in fraudulent claims, officials said, but the actual loss to BIF was $784,000, stemming from invoices for services never rendered and inflated invoices.

Allen was the sole owner of both companies, unbeknownst to her employer, and used the manes of the parents of claimants in an attempt to create the appearance of legitimate invoices submitted to BIF, the U.S. attorney’s office said.

Released on bond under the conditions of electronic monitoring and home confinement, Allen must liquidate her assets to make restitution to BIF.

Follow IFAwebnews: 
Important links and updates throughout the day via Twitter Join IFAwebnews’ Insurance News group on LinkedIn.com Become a fan of IFAwebnewss Insurance News on Facebook Feeds for all the ourinsurance news or just the lines you need. Insurance news delivered to your inbox
© 2009 New Horizon Group, Inc. :: Insurance & Financial Advisor | IFAwebnews.com :: NS 55 queries. 0.482 seconds.
Entries RSS Comments RSS