An official at the state agency that provides workers’ compensation insurance coverage for more than 29,000 businesses and government agencies has been accused of fraud in a death case.
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The state grand jury on Thursday indicted Ann Seibel, 59, the former claims director for CompSource Oklahoma.
She is accused in a felony charge of workers’ compensation fraud. The indictment was made public Friday.
Another official, CompSource’s top attorney, Kevin Nelson, resigned Monday. He has not been charged, but grand jurors allege he “conspired” with Seibel.
Grand jurors allege Seibel pressured a Tulsa doctor into withdrawing his conclusion that a woman’s fatal heart attack was work-related.
The doctor made the report for a private attorney the woman’s husband hired. However, the doctor also has done medical reports for CompSource.
Grand jurors allege Seibel told the doctor he needed to withdraw his report in the death case “if he wanted to continue working with and doing business with CompSource.”
“This denied the workers’ compensation court a critical piece of evidence ... and denied the ... worker’s surviving spouse the right to present his best case for compensation,” said Attorney General Drew Edmondson, whose assistants advise the multicounty grand jury.
Seibel has worked for CompSource for 10 years. The agency once was known as the State Insurance Fund.
Her attorney, David Ogle, said she did nothing illegal and acted on the advice of CompSource’s general counsel, Nelson.
Ogle said this is “the best example yet” of the often-repeated claim from defense attorneys - that grand juries are so easily swayed that prosecutors could persuade them to indict a ham sandwich.
Ophelia Olden, 51, of Coweta died Feb. 20, 2004, from a heart attack. Her employer, Mike Fretz Inc., is insured with CompSource.
Her husband, Harold Olden, hired an attorney to pursue workers’ compensation. The attorney hired Dr. Gary Lee to review the evidence.
The doctor wrote a report in August 2005, concluding Ophelia Olden suffered a heart attack after taking the drug Bextra for a 2003 on-the-job shoulder injury.
“Dr. Lee stated that if her shoulder injury was occupational in nature, then the use of Bextra and her death was occupational in nature,” grand jurors reported in the indictment.
Grand jurors allege Seibel called the doctor Sept. 13 and coerced him into withdrawing his conclusion.
Ann Seibel was transferred out of the claims department in mid-January and now helps CompSource negotiate with medical providers for discounts to be passed on to policy-holders, said Terry McCullar, president of CompSource.
Officials said she will continue to work until the criminal case is resolved.
Nelson submitted his resignation Monday, effective July 24.
“He said he wanted to pursue other opportunities,” McCullar said Wednesday.
Prosecutors would not say why Nelson was not indicted. His attorney, Tom Riesen, said Nelson was disappointed his name is in the indictment.
“We were led to believe that if he resigned that that would be the end of it,” Riesen said. “He’s never been in trouble in his life, and he has devoted his entire adult career to public service.”
Nelson was general counsel at CompSource for seven years, Riesen said. Nelson is a former assistant attorney general.
