Beware of WCMSA Administrators in Sheep’s Clothing

In a recent decision issued by the Superior Court of Long Beach California, financial advisor, Tom Fallon, was convicted of 25 criminal counts of money laundering and grand theft related to the administration of Workers’ Compensation Medicare Set-Aside (WCMSA) accounts.  A year-long investigation by the California Insurance Department revealed that Mr. Fallon allegedly coerced claimants to deposit workers’ compensation settlement checks into a WCMSA account with his companies, Fortis Financial Insurance Services, Inc. and Legacy Group Financial.   The funds were thereafter allegedly utilized by Mr. Fallon for his own financial gain.  Victim impact statements read at the time of sentencing evidenced the devastating effect the misuse of these funds had upon the victims.  Mr. Fallon was ultimately sentenced to 10 years and 4 months in state prison and was ordered to pay restitution to the victims in the amount of $995,118.

This case highlights the importance of having a competent fiduciary administer MSA funds and the unfortunate consequences that can occur when this does not take place.  These consequences can impact all parties to the claim.   Our Bridge Pointe team has been providing in-house, comprehensive, administration services for beneficiaries since 2004.  This has included both self-administration support services and professional administration of MSA accounts.   Our experience, understanding of CMS guidelines, negotiated prescription pricing, discounts, individualized service and attention to detail is what makes Bridge Pointe an industry leader in the administration services.  For further information on administration options, please contact Bridge Pointe at 877.551.3900.