Texas Woman Sentenced for Disaster Relief Fraud Across Multiple States
May 12, 2025 | JacobiJournal.com – Houston, TX – Disaster Relief Fraud: A Texas woman has been sentenced to nearly five years in federal prison for orchestrating a multi-agency disaster relief fraud scheme that caused over $620,000 in losses, according to the U.S. Attorney’s Office for the Southern District of Texas. Sophisticated Scam Leveraged Social Media Cora Chantail Custard, 35, who lived in both Houston and San Antonio during the conspiracy, pleaded guilty on September 17, 2024, to one count of conspiracy to commit wire fraud. On sentencing day, U.S. District Judge David Hittner imposed a 57-month prison term, followed by three years of supervised release. Custard must also pay $621,388 in restitution. The court emphasized the sophistication of the scheme, which included leveraging social media—particularly Facebook—to attract clients and advertise her illegal services. Fraud Spanned Federal and State Programs From March 2020 to March 2021, Custard worked with co-conspirators to submit fraudulent disaster relief applications on behalf of herself and others. Using her Facebook page, she encouraged followers to “do apps” that could yield between $6,000 and $8,000 within a week. Authorities say she submitted or assisted in submitting over 100 false Economic Injury Disaster Loan (EIDL) applications, with at least 36 of them leading to $345,000 in advance payments. Custard also filed 30 fake FEMA disaster claims related to Hurricane Laura (August 2020) and Hurricane Sally (September 2020). Sixteen of those applications were approved, producing about $75,000 in payments. Unemployment Insurance Also Targeted Beyond federal relief programs, Custard allegedly filed over 100 fraudulent unemployment insurance claims across multiple states, including Michigan and Illinois. These applications generated roughly $200,000 in payouts. Federal prosecutors said she not only defrauded the U.S. government but also seven different state agencies. At sentencing, she was remanded into custody immediately. Source 📌 Why It MattersThis case highlights how fraudsters exploit disaster relief programs during national emergencies and underscores the need for robust inter-agency oversight. 📚 Read More from JacobiJournal.com: 📬 Stay informed. Subscribe to JacobiJournal.com for weekly updates on fraud prosecutions, enforcement actions, and regulatory news.
Long Island School District Sues Insurers Over Abuse Allegations
May 8, 2025 | JacobiJournal.com – Bay Shore, NY – Long Island School District: The Bay Shore Union Free School District has filed a federal lawsuit against Hartford Insurance Group and CNA Insurance, accusing the two insurers of refusing to defend and indemnify the district against a wave of sexual abuse lawsuits tied to a former elementary school teacher. Dozens of Claims Spark Legal Action The district faces 45 lawsuits filed by former students under New York’s Child Victims Act (CVA). The lawsuits allege sexual abuse by Thomas Bernagozzi, a teacher who worked from the 1970s through 2000 at Gardiner Manor and Mary G. Clarkson Elementary Schools. Long Island School District Bernagozzi was criminally charged in 2023 for allegedly abusing two students. He has pleaded not guilty. Roughly half of the civil suits have been settled. However, 18 cases remain unresolved—cases for which the district claims Hartford and CNA should provide insurance coverage under general liability policies issued between 1973 and 1982. $35 Million Bond, $25M Verdict Slashed In 2023, Bay Shore approved a $35 million bond to help fund settlements for 12 claims not covered by insurance. Meanwhile, one lawsuit that went to trial resulted in a $25 million jury award to a victim. A judge later reduced that award to $4 million, pending a new trial on damages unless the victim accepts the lower amount. Other claims have been paid through the New York State Insurance Reciprocal (NYSIR). Insurers Accused of Delay Tactics According to the lawsuit filed on May 2 in U.S. District Court for Eastern New York, the district alleges that both insurers have adopted a “wait-and-see” strategy in the wake of the CVA’s passage. The complaint argues that the insurers: Bay Shore contends that this conduct violates the terms of their contracts, as well as New York state insurance and consumer protection laws. Seeking Accountability and Coverage In its suit, Bay Shore requests a declaratory judgment affirming the insurers’ obligation to cover the remaining lawsuits. The district also seeks damages for breach of contract, bad faith, and violations of state business and insurance laws. Officials argue that the insurers are trying to evade financial responsibility despite issuing policies precisely to cover serious liabilities like those now unfolding. Source 📣 Districts and Institutions: Review Your Legacy Insurance Policies This case highlights the importance of reviewing decades-old liability policies and demanding accountability when insurers attempt to avoid responsibility under the CVA or similar survivor rights laws. 🔎 Read More from JacobiJournal.com: ⚖️ Subscribe to JacobiJournal.com for updates on high-stakes insurance litigation, institutional liability, and child protection laws.
Cupertino Electric Pays $1.4M in Back Wages for Labor Violations
San Jose, CA – Cupertino Electric Inc., a prominent electrical engineering and construction firm, has paid $1.4 million after the U.S. Department of Labor uncovered significant violations of the Fair Labor Standards Act (FLSA). Over 2,600 Workers Impacted According to the Department’s Wage and Hour Division, the San Jose-based company failed to properly calculate overtime wages for more than 2,600 employees. Investigators discovered that Cupertino Electric did not include non-discretionary bonuses—such as production or performance-based incentives—when determining overtime pay rates. As a result, the company shortchanged workers on overtime compensation, prompting federal enforcement action. In response, Cupertino Electric paid both back wages and fines, totaling $1.4 million. Longstanding Industry Presence Cupertino Electric has a wide footprint, having built electrical systems for private and public sector clients across multiple states. While the company has maintained a reputation for large-scale infrastructure work, this case reveals systemic issues in its payroll practices. DOL Reinforces Employer Responsibilities “Employers must accurately calculate overtime pay and include all required compensation, such as bonuses, when determining the correct rate,” said a representative from the Department of Labor. “Failure to do so violates workers’ rights and creates unfair labor conditions.” This case serves as a reminder that even large firms are not exempt from compliance. Employers must regularly audit their payroll systems to avoid wage violations that could result in costly penalties. Source 🔎 Read More from JacobiJournal.com: 📢 Stay Informed, Stay Compliant JacobiJournal.com brings you the latest on labor law enforcement, fraud investigations, and workplace compliance. Visit us regularly for expert insights and updates on employer accountability.
Ex-State Trooper Convicted of Bribery and Fraud in CDL Testing Scheme
Boston, MA – Ex-State Trooper, Gary Cederquist, has been convicted on nearly 50 counts for accepting bribes and falsifying commercial driver’s license (CDL) test results. The case reveals a serious breach of public trust and raises concerns about the integrity of CDL licensing in the state. Bribes Exchanged for Fake Passing Scores Ex-State Trooper Cederquist, 59, of Stoughton, accepted illicit payments including a new snowblower and driveway paving in return for issuing fake passing scores to unqualified CDL applicants. Instead of upholding testing standards, he passed at least 17 drivers who had failed their tests — actions that endangered public safety. The conspiracy took place between May 2019 and January 2023, according to federal prosecutors. Cederquist and other troopers used coded text messages, often saying the applicant was “golden,” to signal they had falsely passed someone. In one case, a trooper joked about how poorly a driver performed, but passed them anyway. Prosecutors Condemn Violation of Duty “Cederquist chose bribery and extortion over his oath to protect the community,” said U.S. Attorney Leah Foley. “His actions placed unqualified drivers behind the wheels of heavy vehicles, threatening everyone on the road.” The jury convicted him of conspiracy to commit extortion, honest services mail fraud, and extortion, among other charges. Four co-defendants, including two civilians and two troopers, have already pleaded guilty and are awaiting sentencing. Broader Pattern of Corruption This is not an isolated incident. In recent years, the Massachusetts State Police has dealt with multiple scandals. For instance, 46 troopers from Troop E, which patrolled the Massachusetts Turnpike, were caught falsifying overtime records between 2015 and 2017. They submitted fake traffic citations to justify pay for shifts they didn’t work. Deadly Consequences and Systemic Failures The CDL testing scandal follows a tragic 2019 crash in New Hampshire, where commercial truck driver Volodymyr Zhukovskyy killed seven motorcyclists. At the time, he should have lost his CDL due to a DUI arrest in Connecticut. Although Connecticut officials notified Massachusetts, the license was never suspended due to a backlog in processing such alerts. State Implements Reforms In response to these issues, Massachusetts officials have implemented several reforms: These reforms aim to restore integrity in a system where, in 2022, only 41% of CDL applicants passed — a statistic that underscores the importance of honest testing. Source 🔎 Read More from JacobiJournal.com: 🛡️ JacobiJournal.com – Exposing Fraud, Protecting WorkersStay informed on law enforcement corruption, workers’ comp fraud, and corporate abuse. Bookmark JacobiJournal.com for expert insights and breaking news.
North Carolina Man Faces 21 Felony Charges for ID Theft, Insurance Fraud
May 06, 2025 | JacobiJournal.com – Zebulon, NC – North Carolina Man: A 30-year-old man faces 21 felony charges after allegedly stealing multiple identities and filing fraudulent auto insurance claims with several major carriers. Fraud Spanned Six Months and Four Insurers According to the North Carolina Department of Insurance (NCDOI), Damain Rayshawn Cummings assumed the identities of at least six individuals between September 2024 and March 2025. During that time, he filed false auto claims with Progressive, State Farm, Liberty Mutual, and Allstate. North Carolina Man Investigation Led by NCDOI Authorities became aware of the scheme after suspicious activity flagged several claims. NCDOI investigators launched a full investigation and uncovered evidence suggesting that Cummings accessed victims’ personal data—potentially through birth certificates and email accounts. He was arrested and appeared in court on April 30, where he was later released on a $300,000 bond. Charges Include Insurance Fraud and Identity Theft The charges include multiple counts of insurance fraud, identity theft, and theft by deception. Officials said the case underscores the ongoing risk of identity-based insurance scams in North Carolina and across the country. Authorities Urge Vigilance State officials are encouraging residents to monitor their insurance records, review credit reports, and report any unauthorized claims immediately. The NCDOI continues to investigate whether additional individuals were affected. Source 🔎 Read More from JacobiJournal.com: 🕵️ Stay Alert with JacobiJournal.com Track major fraud cases, workers’ comp litigation, and insurance crime news at JacobiJournal.com — your trusted source for updates and expert insights.
Court Overturns $1.84 Million Jury Award for Work Injury Claim
A California appellate court has overturns $1.84 million jury verdict awarded to a subcontractor’s employee who was injured on the job. The ruling highlights the limits of liability for general contractors in workplace injury lawsuits. Worker Claimed Unsafe Conditions Caused Injury The injured worker sued the general contractor after falling through an unguarded skylight. He alleged that unsafe work conditions were to blame. A jury initially agreed and awarded him nearly $2 million in damages. Defense Challenged Liability However, the defense argued that the worker was not authorized to be in the area where he fell. They claimed he acted outside the scope of his job duties and ignored safety rules. The general contractor filed a motion for nonsuit, asserting they had no legal duty in this specific situation. Appellate Court Overturns Verdict On appeal, the court found that the general contractor did not owe the injured worker a duty of care. They emphasized that general contractors are not automatically responsible for the safety of subcontractor employees—especially when those employees violate safety protocols. Moreover, the court noted that the worker’s own employer bore primary responsibility for his supervision and safety. Broader Implications This decision may influence future workplace injury lawsuits in California. It clarifies that general contractors are not liable unless they directly control the worksite in a way that contributes to the injury. Therefore, injured workers must prove more than just unsafe conditions—they must show a clear duty of care. Source: Court Overturns $1.84 Million Jury Award for Work Injury Claim 🔎 Read More from JacobiJournal.com: ⚖️ Stay Ahead with JacobiJournal.com Get expert insights into legal trends, verdicts, and policy shifts affecting workers’ compensation law. Visit JacobiJournal.com for the latest updates and expert commentary on high-stakes litigation.
Court Rejects Carpool Exception to Going-and-Coming Rule, No Liability Found
May 02, 2025 | JacobiJournal.com Court Rejects Carpool Exception: In a recent appellate decision, a California court ruled that the “going-and-coming rule” still applies when an employee carpools to work in a privately arranged ride with a colleague—even when that colleague receives a nominal travel stipend from the employer. Background: The Going-and-Coming Rule Under California workers’ compensation and liability law, the going-and-coming rule generally exempts employers from liability for employee injuries or torts that occur during the employee’s commute to and from work. Exceptions to this rule do exist, particularly when the commute is within the scope of employment or when the employer benefits from the transportation. Case Details The case involved an employee who was injured in a car accident while carpooling with a co-worker. The co-worker had coordinated the carpool arrangement informally and received a modest stipend from the employer intended to encourage carpooling and reduce parking congestion. However, the court found that the stipend did not transform the co-worker into an agent of the employer, nor did it constitute sufficient employer control to make the carpool trip fall under the course of employment. Court’s Reasoning Court Rejects Carpool Exception, The panel emphasized that the employer neither mandated the carpool nor exercised control over the transportation. Therefore, the injury sustained during the commute remained outside the scope of employment. The court declined to extend liability under the exception to the going-and-coming rule, noting that doing so would significantly blur the boundary between personal and work-related travel. This decision reaffirms longstanding precedent that voluntary carpools typically do not qualify for exceptions to the going-and-coming rule—even when small employer incentives are involved. Source 🔎 Read More from JacobiJournal.com: ✅ Stay Current on Workers’ Comp Law Want to stay ahead of legal developments in employment and workers’ compensation? Visit JacobiJournal.com for detailed case law analysis, fraud updates, and court rulings that matter to legal, insurance, and HR professionals.
San Joaquin County DA Secures Felony Conviction in Workers’ Comp Fraud Case
May 02, 2025 | JacobiJournal.com – Stockton, CA – The San Joaquin County DA Office has successfully obtained a felony conviction in a workers’ compensation fraud case, reinforcing its strong stance against insurance fraud and abuse in the region. Stacy Johnson pled guilty to two felony charges: Penal Code 487 (Grand Theft) and Penal Code 550(b)(3) (Insurance Fraud). As a result, he was sentenced to four months in County Jail, two years of felony probation, and ordered to pay $3,000 in investigative restitution and $2,000 to his former employer, Amazon, for the stolen goods. Faked Robbery and Fraudulent Claim According to prosecutors, Johnson conspired with others to stage a robbery of an Amazon delivery truck he was driving. He then filed a fraudulent workers’ compensation claim, falsely citing “physiological injuries and stress” as a result of the staged incident. If the fraud had not been detected, the false claim could have cost an estimated $35,000—a burden likely to be passed on to consumers through increased prices. DA’s Office Sends a Message District Attorney Ron Freitas emphasized the broader implications of such crimes, stating: “Workers’ compensation fraud is NOT a victimless crime—it affects all of us. It drives up costs for local businesses and raises prices for the goods we rely on every day.” Freitas added that the DA’s ongoing outreach campaign makes it clear: San Joaquin County will not tolerate workers’ comp fraud. Those who commit it will be prosecuted. Source: San Joaquin County DA Office 🔎 Read More from JacobiJournal.com: ✅ Stay Ahead of Workers’ Comp Fraud Trends Explore the latest case law, convictions, and enforcement efforts at JacobiJournal.com. We deliver expert insights to help professionals stay informed and protected.
Cargo Theft Surges in 2024, Led by California, Texas, and Florida
New GearTrack and CargoNet Report Highlights Evolving Tactics and Hotspots Cargo Theft Surges in North America, with California, Texas, and Florida accounting for more than half of all incidents in 2024, according to a newly released report by GearTrack and Verisk’s CargoNet. These states alone made up 54% of all reported thefts, as organized crime groups target key logistics corridors and multimodal hubs. Multimodal Hubs and Ports Under Threat The report highlights ongoing risks around California and Texas freight corridors, as well as near Chicago’s intermodal facilities. Additionally, Florida ports are seeing a concerning uptick in activity, underscoring the broader vulnerability of high-traffic freight routes. Thieves are increasingly drawn to high-volume shipping points where goods are temporarily staged, loaded, or in transit. As a result, companies moving freight through these areas face growing exposure to losses. High-Value Goods Are Top Targets While nearly all types of cargo face risk, several categories have emerged as especially attractive to criminals: These categories are favored not only for their market value but also due to their ease of redistribution and resale. Organized Crime Adopts Sophisticated Tactics Cargo Theft Surges: The report also emphasizes how organized theft groups are deploying more advanced schemes to avoid detection and maximize returns. Strategies now include: This evolving threat landscape highlights the need for real-time intelligence and enhanced verification processes. Industry Collaboration Offers New Tools for Prevention In response, GearTrack and CargoNet have partnered to provide 24/7 cargo recovery support and access to Verisk’s theft and fraud analytics tools. The collaboration will also launch the GearTrack Cargo Security Index, a monthly digest powered by CargoNet’s data to track national and regional theft patterns. “Through this partnership, customers will gain timely risk alerts and actionable insights,” the report notes, adding that real-time data can help logistics providers respond faster and adapt to new threat vectors. 📢 Read More from JacobiJournal.com: 🔍 Stay informed on cargo security, fraud trends, and insurance insights. Visit JacobiJournal.com for weekly updates and expert analysis.
Demand for Medical Evaluators Outpaces Growth in CA Workers’ Comp System
Rising Panel Requests Challenge Gains from 2021 Payment Reforms Demand for Medical Evaluators: Although California’s workers’ compensation system has seen a 16% increase in qualified medical evaluators (QMEs) since 2019, a new report reveals that demand for their services is growing even faster. As a result, the system remains strained despite efforts to attract more physicians. Evaluator Numbers Rise After Payment Structure Reform According to an analysis by the California Workers’ Compensation Institute (CWCI), the number of state-certified evaluators climbed from 2,561 in 2019 to 2,972 in 2024. Much of this growth followed the 2021 overhaul of California’s medical-legal fee schedule. Previously, medical-legal evaluations operated under a complex three-tiered payment system. However, reforms introduced a flat fee model with additional compensation for record reviews and certain specialties. These changes aimed to improve financial incentives and bolster participation among physicians. Demand Surges Despite More Evaluators Nevertheless, panel requests — which are filed when disputes arise over issues like injury causation, disability levels, or treatment plans — grew even faster than the evaluator pool. Between 2019 and 2024, panel requests jumped by 17%, and from 2021 to 2024 alone, they surged by 32.7%, CWCI reported. Thus, while the evaluator workforce expanded, the intensified demand has undercut availability gains, leaving injured workers and claims administrators grappling with longer wait times. Specialty Shortages Create Additional Strains The report further highlights that although some specialties added more evaluators, they still struggled to meet rising panel demands. For example: Worryingly, psychology was the only specialty where evaluator numbers actually declined, dropping 8% over the six-year span. These specialty shortages signal deeper systemic pressures, particularly in mental health-related evaluations where claims complexity often requires specialized expertise. Outlook: Reform Efforts Must Continue The CWCI analysis underscores that payment structure reforms, while necessary, are not sufficient on their own. Additional measures may be needed to ensure timely access to qualified evaluators, especially as workers’ compensation disputes grow more intricate and medically complex. Source: CWCI 🔎 Read More from JacobiJournal.com: 📢 Stay updated on workers’ comp reforms, labor law developments, and medical-legal news at JacobiJournal.com.