A Diamond Bar, California man pleaded guilty to insurance fraud for underreporting the number of employees at his nurse staffing agency to the State Fund. The underpayment of required workers’ compensation insurance resulted in his being ordered to repay the state $1.38 million as part of his sentence, the District Attorney’s office announced.
The man, who runs a company called Nurse Connection Inc., was investigated by the California Department of Insurance after it received a referral in September 2008 from State Fund involving alleged underreporting workers’ comp on quarterly payroll reports.
After an investigation, the case was turned over to the District Attorney’s office, where a criminal complaint was filed against the individual on August 12, 2009.
Deputy District Attorney Ellen Aragon of the Healthcare Fraud Division said the man was ordered to pay the restitution by Superior Court Judge David Horwitz as part of five years of supervised probation. He will be electronically monitored for the first 90 days of probation. Horwitz suspended a five-year prison term. (workersxzcompxzkit)
Aragon said the judge also ordered the defendant to pay the state Department of Insurance investigative costs of $110,000. The individual must submit his annual corporate tax returns to the Department of Insurance and the District Attorney’s office, as well as submit proof of current worker comp insurance when he returns to court for a progress report on November 8.
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, healthcare, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ ReduceYourWorkersComp.com or 860-553-6604.
Podcast: KNOW the New OSHA Recordkeeping Rules — OR Risk Fines and Criminal Penalties.
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers’ comp issues.
©2009 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com.