The California Department of Insur-ance (CDI) has arrested three suspects–Richard Contreras, 41, his wife Jun Nigh Contreras Carrasco, 42, of Fontana, Calif., and Robert Bird, 65, of La Quinta, Calif.–for insurance fraud, grand theft, conspiracy and labor code violations for receiving consideration for referrals. The Los Angeles County District Attorneys’ Workers’ Com-pensation Unit is prosecuting the case.
The case involved a third-party administrator, Fleming & Associates, and a La Crescenta, Calif.-based company, which pro-cessed workers’ comp claims for employers and public entities that are self-insured. Fleming paid more than $1 million to seven phony companies for fraudulent billing for employee vocational rehabilitation services.
Bird owned two shell companies (Glendale P.O. Boxes only) that billed for alleged workers’ comp vocational rehabilitation services in the amount of $720,170.
Contreras allegedly generated invoices for services that were excessive, unnecessary or fraudulent, and directed the payments to Bird’s companies.
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