Some California workers who have financial struggles attempt to use the state's worker's compensation system to boost their incomes. Employees sometimes fake injuries or exaggerate the severity of workplace injuries. In other cases, claims may be filed for injuries that are not work-related. Such employee fraud can be costly to employers because it will cause higher insurance premiums. This can have a severe impact on the profits of the company.
A 23-year-old man from Hemet was arrested in November after an investigation that followed a worker's compensation claim that he filed in Oct. 2012. Upon suspicion of employee fraud, the San Bernardino County District Attorney's Workers' Compensation Insurance Fraud Unit launched an investigation. The man was arraigned on a recent Thursday on felony charges of insurance fraud.