Fraud News

California Workers’ Comp Division Suspends 6 Medical Providers for Fraud

The California Division of Workers’ Compensation has suspended six more medical providers from participating in the state’s workers’ comp system, bringing the total number of suspended providers to 38. The suspensions were made possible by the passage last year of …

Los Angeles Agent Sentenced for Embezzling Over $100K

Suren Hovhannisyan, a former insurance agent, has been sentenced in Los Angeles County Superior Court to 180 days in jail and five years of formal probation after pleading no contest to three felony counts of Grand Theft. Hovhannisyan was also …

Massachusetts Prosecutors Seek $13M in Deadly Meningitis Outbreak

Boston federal prosecutors are seeking more than $13 million from a Massachusetts pharmacy co-founder who was sentenced to prison in a nationwide meningitis outbreak that killed 76 people and sickened hundreds more. The Boston Globe reports that the U.S. Attorney’s …

9 People Sentenced in $500K California Auto Insurance Fraud Ring

Michael Charles Young, 30, of Sacramento, Calif., the reported leader of a large auto insurance fraud ring, was sentenced to more than 10 years in state prison for bilking insurance companies out of an estimated $500,000 by filing fraudulent insurance …

Workers’ Comp Lien Proceedings in California Scheduled for Drobots

The Division of Workers’ Compensation has scheduled lien consolidation proceedings in August for suspended providers Michael D. Drobot, Michael R. Drobot and Philip A. Sobol. Combined, the three have roughly 13,000 liens, which have been consolidated pursuant to the chief …

Southern California Agent Charged for Targeting Injured Workers’ Benefit Funds

Tom Fallon, 63, of Long Beach, Calif., is being arraigned today in Superior Court in Long Beach on multiple felony charges including theft by embezzlement and money laundering. Fallon’s daughter, Christina Fallon, 28, also of Long Beach, is scheduled to …

California Department of Workers’ Comp Says 441K-plus Lien Declarations Filed

The California Division of Workers’ Compensation is reporting that 441,070 supplemental lien declaration forms were filed. This amount represents half of the 882,648 liens filed in California’s workers’ comp system between Jan. 1, 2013 and Dec. 31, 2016 for which …

Rand Report Recommends Analytics for Fraud Prevention in Workers’ Comp

The California Division of Workers’ Compensation has posted a report from the Rand Corp. with recommendations to prevent fraud in the workers’ compensation system. The Department of Industrial Relations last year requested that the Rand assess medical provider fraud in …

Investigation Solutions Assists in $32 Million Employer Fraud Case

San Diego, CA, June 21, 2017- Investigation Solutions, Inc. (ISI) worked alongside the California Department of Insurance in a $32 million workers’ compensation fraud case that resulted in an arrest earlier this month. Detectives at the DOI arrested Gina Marie …

California Division of Workers’ Comp Suspends Psychiatrist for Fraud

California’s Division of Workers’ Compensation has suspended Pasadena psychiatrist Jason Hui-Tek Yang from participating in the state’s workers’ comp system following his conviction in Riverside County Superior Court for his involvement in an insurance fraud conspiracy that referred patients for …