Employment Agency to Pay Huge Fine in Work Comp Fraud

Staffing Services Inc., a temporary employment agency holding contracts for thousands of employees, will pay a court ordered $20 million in restitution after reaching a plea bargain in January 2010 in a workers' compensation insurance fraud case according to California Insurance Commissioner Steve Poizner.

The California Department of Insurance (CDI) launched an investigation into Staffing Services after the State Compensation Insurance Fund (State Fund) notified CDI of the suspected fraud. (workersxzcompxzkit)

Following a two-and-a-half year CDI investigation, charges against Staffing Services filed in 2008 alleged an attempt to defraud State Fund of more than $18 million in workers' comp insurance premiums owed from 2002 to 2005. It was alleged that Staffing Services purposely misrepresented the types and number of employees in order to pay a smaller amount in premiums.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.

Podcast/Webcast: How To Prevent Fraudulent Workers' Compensation Claims Click Here http://www.workerscompkit.com/gallagher/podcast/

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