Sacramento County Residents Arrested On Fraud Charges

September 20, 2001

The California Department of Insurance (CDI) Criminal Investigations Branch’s Fraud Division arrested a pair of Sacramento County residents last week on workers’ compensation fraud.

Kathleen Anstead was booked into the Sutter County Jail with bail set at $10,000, while Alecia Smith was arrested at her workplace and booked into the Yolo County Jail. The two could face up to five years in state prison with a possible maximum fine of $50,000.

Investigators report that in April 1997, Anstead filed a workers’ comp claim with Golden Eagle Insurance noting that she had injured her shoulder, neck and back while working as an instructor for Community Resource Services. At the time of the claims process, Anstead allegedly made misrepresentations to her doctors when she did not disclose previous workers’ comp claims for a prior injury to her neck.

Anstead is also reported to have committed perjury at a sworn deposition before a Workers’ Compensation Appeals Board Hearing when she denied any prior injury or previous treatment to her neck. As a result of Anstead’s misrepresentations, Golden Eagle Insurance’s final loss on the claim was $18,000.

In April of 1988, Smith filed a workers’ comp claim when working for the State Franchise Tax Board where she alleged to have suffered from carpal tunnel and was not able to open and close her hands and fingers.

A CDI investigation reported Smith had made material representations to the State Compensation Insurance Fund (SCIF) and treating physicians regarding her inability to open and close her hands and fingers. A surveillance video showed that Smith was seen doing physical tasks that were inconsistent with the representations she offered throughout her claim.

As a result of the misrepresentations, SCIF paid more than $9,400 in temporary disability, $17,500 in medical expenses and $6,500 in investigative fees for a total loss of $33,500.

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