Judge tells prison to seize Nassar’s money for victims
National News
A judge ordered the government to take money from the prison account of a former Michigan sports doctor who owes about $58,000 to victims of his child pornography crimes.
Larry Nassar has received about $13,000 in deposits since 2018, including $2,000 in federal stimulus checks, but has paid only $300 toward court-ordered financial penalties and nothing to his victims, prosecutors said.
He had a prison account balance of $2,041 in July.
“Because (Nassar) has received substantial non-exempt funds in his inmate trust account since incarceration, he was required by law to notify the court and the United States attorney and to apply those funds to the restitution that he still owed,” U.S. District Judge Janet Neff said Thursday.
In a court filing, Nassar said he had received “gifts” from “third parties.”
He said inmates should be paid a “living wage” for prison jobs so they can “make reasonable payments towards restitution.”
Nassar was a doctor at Michigan State University and USA Gymnastics, which trains Olympians. He pleaded guilty in federal court to child pornography crimes before pleading guilty in state court to sexually assaulting female gymnasts.
Nassar is serving decades in prison.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.