Task force to investigate former SCIF employees

August 6, 2007

Three California agencies have formed a task force to investigate the state’s workers’ compensation insurer, California State Compensation Insurance Fund (SCIF). The California Highway Patrol, California Department of Insurance, and San Francisco District Attorney’s Office are jointly investigating allegations of potential misconduct by former employees of SCIF, CDI reported.

In March, SCIF’s board removed then president James Tudor and vice president of group insurance programs Renee Koren after an internal investigation raised questions regarding the corporate governance and management of the organization. Lawrence Mulryan has been serving as interim president since that time.

Then in April 2007, the DOI, which has regulatory oversight of SCIF, began conducting an exhaustive top to bottom review of the organization, reviewing among other operations, personnel issues and potential misuse of funds at the state’s workers’ compensation insurer.

CDI said it will continue, independently of the task force, to perform its regulatory audit and investigation of State Fund. The findings of that independent examination will be released this fall.

In May 2007, State Compensation Insurance Fund provided information from its internal investigation, which raised concerns of potential improprieties of former employees.

Because the State Compensation Insurance Fund headquarters is located in San Francisco, the San Francisco District Attorney’s office was approached and agreed to be part of the Task Force.

At this time, the California Highway Patrol said, SCIF has been cooperating fully with investigators.

To protect the integrity and confidentiality of the criminal investigation, agencies involved in the task force will not comment on any matters related to the criminal investigation until its completion, CDI said.

The task force has established a confidential toll free tip line 877- 620-2345 to report information related to the investigation.

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Insurance Journal West August 6, 2007
August 6, 2007
Insurance Journal West Magazine

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