As a recent case showed, even senior citizens are not immune to committing workers compensation fraud.
Robert Gunn, 70, of Pacific Grove, pleaded guilty to one felony count of failure to register as an employer and one misdemeanor count of failing to secure workers comp insurance. A Department of Insurance investigation found that Gunn had not purchased workers’ compensation insurance prior to an employee’s injury.
“The underground economy is a multi-billion drain on California’s economy and hurts law abiding businesses,” said Commissioner Dave Jones. “Employers that cheat the system by not providing workers compensation not only risk employee safety but also contribute to higher costs for businesses and consumers.”
In May 2013, Department of Insurance officials received information that Gunn informed his employees that he did not have workers comp insurance, but if he did, he would take the cost of the insurance out of their paychecks. The Department of Insurance began an investigation in collaboration with the Monterey County District Attorney’s Office and the Contractor’s State License Board.
Worker Injured on Job, Suspect Made Medical Payments
The investigation led to Gunn being interviewed while employing contractors at a rental property. Investigators found that one of Gunn’s workers had been injured while on the job and that Gunn paid for him to obtain chiropractic treatments. Gunn told investigators he purchased workers comp insurance recently, but did not have it at the time of the worker’s injury, and was in the process of registering as an employer with the Employment Development Department.
Gunn pleaded guilty to one felony count of failure to register as an employer and one misdemeanor count of failing to secure workers comp insurance. He is scheduled to be sentenced on July 2, 2014.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: kstack@reduceyourworkerscomp.com.
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