Defense Base Act Compensation Blog

The Modern Day DBA Casualty

Defense Base Act Insurance Company CNA may owe US Government as much as $58.5 million

Posted by defensebaseactcomp on July 28, 2011

An alarming story of greed, negligence, and a lack of government oversight.

July 28, 2011

SIGAR Audit-11-15 Contract Performance and Oversight / Defense Base Act Insurance

SIGAR audited a pilot program in which CNA was contracted to provide DBA Insurance for US Army Corps of Engineers contracts.

So this $58.5 million was overcharged in a very small portion of the DBA business that CNA carries.

Basically CNA overcharged, didn’t reimburse USACE and contractors for labor charges that turned out not to be justified,  did not have proper paperwork in place and accounting procedures to allow DCAA to be able to look at their books and determine who was owed what.

CNA also commingled funds meant to be segregated for different contracts, lumping them all into one account.

The workers’ compensation program is so riddled with problems as a result of using a third-party insurer that the inspector general’s office suggests it may be worthwhile to dump the insurer altogether, the audit reads.

See Also

Problems abound in US government insurance program

Audit finds numerous problems in workers’ comp program for US contractors in Afghanistan

Army Corps Overpaid CNA $10 Million on War Insurance: Audit

Propublica coverage of CNA’s  treatment of Contractors

How CNA treats Foreign Claimants

9 Responses to “Defense Base Act Insurance Company CNA may owe US Government as much as $58.5 million”

  1. Superman said

    That won’t be the only people CNA owe’s. Just watch, when the indictments come down they are going to be falling like domino’s. And if their lawyers, Levy and Thomas and all their little cronies think they are going to escape the indictments.. they are going to have a rude surprise. Their lawyers need to find a nice warm non extradition country to attempt to hide in. O’ Surprised Mr. Levy. and Mr. Thomas.. All those areas are Special Operations stomping grounds.. so you wont be able to hide there… O gosh.. maybe you should take a trip to Boston and ask Whitey Bulger .. where to go and hide..

  2. A VASERMAN said

    Can any one give me the name of attorneys that take cases of DEFENSE BASE ACT Insurance injuries ,my attorney quit on me and i need one to represent me in Charleston SC on Nov 3 2011.
    Thank you

    • superman said

      Most lawyers suck ass on these cases..

      Contact
      Scott Bloch
      202-496-1290
      sbloch@bsounsel.com

    • daffodils said

      there is a guy called Ralph Loberbaum or something like that, a DBA lawyer with a good record not too far from where you live.

      google him and see what he says, the office is on the coast of Georgia.

      while superman is right that most of them suck, some maybe don’t and i wish you good luck.

    • Dave said

      Ralph Lorberbaum is who my husband used as well he is good just prepare yourself for a long battle and stay positive

  3. [...] covered by CNA and others under the Defense Base Act must fight for years to acquire prosthetics, orthotic [...]

  4. [...] CNA produces a stack of supposed FAXES sent to Injured War Zone Contractors Doctors stating that they have “re-approved” payment of diagnoses and treatment, most of which were never approved ever, much less re approved.  In fact for most of the Doctors CNA denied diagnoses and treatment for blast injuries for many years. [...]

  5. [...] CNA is currently under investigation for just this kind of unlawful and Overly Zealous Defense in denying Defense Base Act Claims [...]

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