In the previous post on this topic, I outlined the problem of employer fraud (as opposed to employee fraud) in the workers’ compensation system. In this post, I will examine some real life examples of employer fraud and discuss what is being done to combat this problem.

First, let’s consider a few real-time examples of employer fraud:

 

• On January 25, 2010 a judge ordered a staffing firm in Bellflower, California to pay 20 million dollars in restitution after a plea bargain was reached in a workers’ compensation fraud case.
• The owners of a roofing company in Orange County, California were arrested on 106 felony counts and charged with $38 million dollars in workers’ compensation fraud. Investigators seized $500,000 in jewelry from their home, as well as two Ferraris, a Bentley and a Range Rover.

 

 

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