Friday, June 20, 2008

Officer Ken Derrick Accused in Insurance Scam


BARTOW, FL

The ex-husband of a former State Attorney's Office employee who was charged earlier this year with insurance fraud now faces the same charge himself.

The charges against Ken Derrick, 37, are the fallout of his call to the Winter Haven Police Department about a fully clothed officer he found in the home he and his ex-wife shared.

Derrick, a former Lake Alfred police officer, was arrested Monday. He is accused of using health insurance in the name of his ex-wife, Kristie, to pay his medical bills.

Derrick was released from the Polk County Jail on Monday, after posting $1,000 bail.

Kristie Derrick, 34, was arrested in May on the same charge.

LISTED AS 'SPOUSE'

Kristie Derrick was fired from her job as a clerk in the State Attorney's Office last year after being accused of falsifying insurance records by telling her insurer that she was still married.

The couple had divorced in 2001. Kristie Derrick was hired by the State Attorney's Office in July 2006.

Kristie Derrick's insurance provider, United Healthcare, does not cover former spouses.

According to an arrest affidavit filed by the State Attorney's Office, Ken Derrick had last gone to Winter Haven Hospital complaining of chest pain on June 21, 2007.

His hospital admissions paperwork listed the United Healthcare insurance policy of Kristie Derrick and his relationship to her as "spouse."

Kristie Derrick is also listed as his spouse and emergency contact on multiple forms.

As a result of the hospital visit, United Healthcare paid $6,935 for his treatment, the affidavit stated.

COMMON LAW CLAIM

On July 24, 2007, State Attorney Executive Director Sam Cardinale questioned Kristie Derrick, asking whether she was married, the affidavit stated.

Initially, she said she was, and then immediately said she was divorced. She said that the listing Ken Derrick as her husband on her personnel records and employee health insurance was an oversight because they had lived together as husband and wife for several years, the affidavit said.

The day after her conversation with Cardinale, Derrick was fired.

In an Aug. 7, 2007, letter, Derrick protested her firing, and inquired about appeal rights.

In the letter, she said the office's requirement that she cooperate with a law enforcement agency's investigation invaded her privacy, and "invaded her common law marriage."

Eligibility for health care coverage includes the employee, spouse and children. Florida doesn't recognize common law marriages.

Investigation into allegations of insurance fraud began after Ken Derrick filed a complaint with Winter Haven police that he went to the home he still shared with Kristie Derrick and found police Sgt. David Keigan standing fully clothed and standing in the shower.

Keigan eventually was demoted to officer for ignoring his duties by leaving the city on June 6, 2007.

Police officials said he left his police vehicle in a parking lot at a branch courthouse where Kristie Derrick worked. They drove to her Auburndale home in her car.

This sparked an internal affairs investigation at the Police Department and at the State Attorney's Office.

According to arrest affidavits, the Derricks still share the same home in Auburndale.

If both Derricks are convicted, the State Attorney's Office will seek restitution on behalf of United Healthcare, said Chip Thullbery, administrative state attorney.

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