THERAPIST PLEADS GUILTY:

Texas Mutual Insurance Company reported that Dr. Catherine Delaney, a Ph.D. therapist from Houston, entered a corporate plea agreement (Delaney and Associates) with the Travis County District Attorney’s office related to charges of workers’ compensation insurance fraud. Delaney pleaded guilty on Jan. 20, 2004, and paid $9,652 in restitution to Texas Mutual. The plea agreement followed a months-long joint investigation that included some unplanned surveillance work by Texas Mutual investigator Kathleen Kennedy. In her spare time, Kennedy works as a volunteer with substance abusers in the Houston area. While attending an alcohol education seminar presented by the Houston Council on Alcohol and Drug Abuse, Kennedy noticed that Delaney was seated directly in front of her. Delaney had filed for workers’ compensation temporary income benefits (TIBs) when she claimed she was unable to work after allegedly injuring her left knee in her employer’s parking lot. She continued to collect TIBs even after going to work for another employer, Alief Independent School District, a few months later. However, Delaney allegedly failed to notify Texas Mutual that she had returned to work. She also repeatedly claimed she was still unable to work so she could continue to receive TIBs of $508 per week. At the seminar, Kennedy observed that Delaney “moved freely and without obvious pain” and that her movements did not match the complaints of physical pain and restrictions she had told her health care providers. Kennedy contacted Assistant District Attorney Donna Crosby, who prosecuted the case on behalf of the Travis County District Attorney’s office.

Topics Texas