Today, State Fund Chief of Internal Affairs Chief Dante Robinson participated in a Los Angeles news conference held by California Insurance Commissioner Dave Jones, to announce the arrest of two manufacturing CEOs and their Certified Public Accountant of 18 felony counts of workers’ compensation insurance fraud and tax evasion totaling $14.6 million.
In his comments, Robinson, who heads State Fund’s fraud fighting efforts said:
“We commend the Department of Insurance, their detectives, EDD, and the other agencies and carriers involved for their diligence in pursuing this significant alleged fraud case.
“Workers’ compensation fraud is often thought of as workers faking or exaggerating a claim, but it can also be committed by providers and employers with far greater financial impact. By underreporting payroll, employers who cheat the system are paying less workers’ compensation premiums and getting an unfair competitive advantage, and may also be leaving their employees at risk.
“For State Fund, fighting fraud is serious business because workers’ comp fraud affects everyone and drives up costs in the system. We are committed to ferreting out those who are cheating the system, and we work closely with the CDI and local DA’s to pursue prosecution. We do this not just because we want to protect the stakeholders in the system, but also because we think the playing field should be level for all employers.”
For more information, see the California Department of Insurance news release.
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Established in 1914 by the state legislature State Fund has operated for 100 years, is California’s largest provider of workers’ compensation insurance, and a vital asset to California businesses. State Fund supports California’s entrepreneurial spirit and plays a stabilizing role in the economy by providing fairly priced workers’ compensation insurance making California workplaces safe, and restoring injured workers.
