Man Accused of Cheating California Workers Comp Fund

August 21, 2009

A man from Southern California was recently charged with insurance fraud because he allegedly cheated the state’s workers’ compensation insurance fund out of $1.4 million. According to the suit, the man falsified his payroll figures at his medical staffing business for six years- between 2001 and 2007- to underpay the state fund.

The man has been ordered to appear in the Los Angeles Superior Court, but he was released on a $100,000 bail. He has been charged with eight different counts of insurance fraud. If he is found guilty, he could face a maximum of up to 40 years in prison and $3.2 million in fines. When the Associated Press attempted to contact the man’s company, it did not receive an immediate response. State and federal laws require that every employer provide accurate information about his or her business (including number of employees and earnings) and that every employer purchase workers’ compensation insurance.