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Employee fraud: California man faces charges of insurance fraud

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.

According to a senior investigator, it was determined that the worker had earned an income from another source while he was also receiving benefits for total temporary disability. Investigators obtained an arrest warrant and proceeded to the man's residence where he was arrested. He was then remanded to a detention center in lieu of $50,000 bail.

California business owners may not expect to have to deal with employee fraud, and may authorize claims without realizing that they are fraudulent. With the support and guidance of a workers' compensation attorney who is experienced in representing employers who are dealing with employee fraud, wrongdoers can be held accountable. With effective legal counsel, business owners are typically able to focus on running their companies rather than policing workers' compensation claims.

Source: workerscompensation.com, "Hemet, CA Man Arraigned on Workers' Comp Charges", Jan. 28, 2016

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