Rancher pleads guilty to falsely claiming cattle losses
National News
A South Dakota rancher has pleaded guilty in federal court to falsely claiming he lost more than a hundred cattle during the autumn blizzard of 2013 that left ranchers in the state reeling with financial losses.
Karl Knutson pleaded guilty Friday as part of a deal with prosecutors, the Rapid City Journal reported. The agreement dismisses a felony count of making a false statement, and prosecutors are recommending Knutson be sentenced to probation and fines.
Knutson's indictment said he submitted a claim in May 2014 to the U.S. Department of Agriculture's Farm Service Agency for the loss of 129 head of cattle in the October blizzard, even though the Vale rancher actually lost at most 13.
Court documents say the disaster payment for that claim would have paid out nearly $117,000.
The indictment also says Knutson told the agency in "a handwritten invoice" in August 2014 that he paid $135,350 for 103 head of cattle that he didn't actually buy.
Knutson didn't immediately return a telephone message from The Associated Press requesting comment regarding the plea. The maximum sentence the 27-year-old could face would be five years in prison and a $250,000 fine, followed by three years of supervised release.
The 2013 storm is estimated to have killed more than 50,000 livestock, causing financial problems for ranchers in the western part of the state.
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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.