California Creates Web Site To Combat Workers’ Comp Fraud

The California Department of Insurance has launched a new Web site to fight against workers’ compensation fraud and spotlight the convictions of those who cheat the system. The site, accessible on the California Department of Insurance (CDI) web site (www.insurance.ca.gov), will provide regularly updated data on workers’ compensation fraud convictions in the state. Assembly Majority Leader Dario Frommer’s legislation, AB 2866, served as the impetus for the creation of the site, Commissioner John Garamendi said.

“Public awareness is the best sunshine to help stop workers’ compensation insurance fraud and its devastating impact on the state,” Garamendi said.

Assemblyman Frommer agreed. “Cracking down on workers’ compensation fraud is the key to lowering compensation rates,” Frommer said. “This web site will be a powerful tool to stop scofflaws who cheat the system up to $3 billion each year.”

One of the first cases featured on the web site is a premium fraud case in which the owner of a janitorial firm underreported his payroll to his insurer and the Employment Development Department (EDD). After a joint investigation by the CDI Fraud Division and EDD, and following prosecution by the San Bernardino County District Attorney’s Office, the owner was convicted and sentenced to three years prison, ordered to pay $747,762 in restitution and paid a $600 criminal fine.

Further conviction data will be posted on the CDI Web site and updated monthly as information on convictions and sentences are obtained.

Latest Comments

• February 1, 2006 at 2:05 am

  Curls says:

  Is this California Web Site To Combat Workers\' Comp Fraud against the Injured Workers or will the workers be able to report fraud perpetrated by the employer, the third party... read more
• February 1, 2006 at 12:49 pm

  IndAgent says:

  I have to give Garamendi credit, from a one time champion of socialism, he finally realized that it doesn\'t work (and from experience). His 2nd term as commissioner has been ... read more
• February 1, 2006 at 12:40 pm

  It\'s a start says:

  I think after record high rate increases and so many businesses leaving the state, public awareness is at an all-time high. It\'s NOT the public that can change this; it\'s t... read more