“The dramatic increase in funding is indicative of the confidence and support that the Department of Insurance has in our Unit based upon our past successes and our vision for the future,” said District Attorney Todd D. Riebe. The grant money will be used to fund the prosecutor and investigative staff for this specialized unit. A portion of the grant money will also be used for public outreach and training programs. “Workers’ Compensation fraud is widespread. You must have the will and the resources to adequately investigate and prosecute system abuses. We did a very good job of that last year,” said Riebe.

This year the Fraud Unit investigated 95 insurance fraud cases compared to 57 in the previous year. It also obtained 17 criminal convictions compared to 6 in the previous year. Examples of the type of cases the Fraud Unit investigates includes claimant fraud, premium fraud, uninsured employers and medical provider fraud all of which may result in imprisonment in addition to large fines. Everyone suffers because of fraud. Tax dollars are wasted; the price of consumer goods increases; and employers and legitimately injured workers lose money. Fraudulent claims also cast a shadow over the thousands of legitimate claims filed each year, leading to delayed or non-existent medical care for truly injured workers. If you think someone is committing workers’ compensation fraud, report it to the California Department of Insurance Fraud Hotline at (916) 854-5700 or the District Attorney’s Office at (209) 223-6444.