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A crane driver from Victoria has been convicted of fraud after her workers’ compensation scam was uncovered by investigators.
Stephanie Carroll was found guilty of operating a fitness studio while receiving workers’ compensation payments. This began back in October 2020 after Ms Carroll lodged a claim for work-induced stress and anxiety.
She was sentenced in the Geelong Magistrates’ Court on 1 June after pleading guilty to the fraud charge. Ms Carroll has now been convicted and ordered to complete 125 hours of unpaid community work, pay $59,001 in restitution plus $2,000 in costs, and has been placed on a 12-month community corrections order.
“Anyone attempting this kind of fraud should know that workers’ compensation fraud is a serious crime and will be met with serious consequences,” said Roger Arnold, WorkSafe’s executive director of insurance.
“The WorkSafe scheme provides crucial support to injured workers – people who defraud the system take money and resources away from injured workers in legitimate need and threaten the integrity of the entire scheme.”
WorkSafe discovered that Ms Carroll had been using her compensation payments to lease a fitness studio in Ballarat, beginning in June 2021. She was the sole operator of the business.
After failing to disclose work activity, Ms Carroll’s payments were terminated in December 2021. She accumulated weekly payments totalling $59,001.
WorkSafe has investigated plenty of similar schemes over the years, such as crowd controller Cedar Ferry, who received six months in prison after a compensation scam that took place over six years and saw over $190,000 stolen.
Mr Ferry was injured while working at a nightclub in Melbourne’s north in 2008. In 2010, he began working again as a crowd controller. Between 2008 and 2014, Mr Ferry received $188,680.80 in weekly compensation payments.
The WorkSafe investigation revealed that Mr Ferry lied to doctors about his condition and did not disclose that he had returned to work.
WorkSafe’s then-acting general counsel Susannah Palmer commented: “The Victorian workers’ compensation scheme is set up to help injured workers get the support and treatment they need to get better and to get back to work when it is safe to do so.”
“Many people who worked on Mr Ferry’s case, including his own doctor and other medical professionals concerned about his injuries, have had their time wasted and would have every right to feel terribly let down by his actions.”
“The vast majority of injured workers want to do the right thing, but there will always be a small minority who are tempted to defraud the system. We will find them and hold them to account.”
Jack Campbell
Jack is the editor at HR Leader.
