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California company accused of workers' compensation fraud

Recently a California medical equipment company was accused of workers' compensation fraud and four men face serious allegations and potentially long-term consequences. Reports indicate that a physical therapy machine and the use of different company names may have been the catalyst for their accused workers' compensation fraud. Employers who faces extensive accusations for a serious crime that may or may not have been committed may choose to fully investigate their options.

Records state that the medical equipment company in question purportedly provided a hot and cold therapy machine used for treating patient inflammation and pain that could be rented for use. The three men who have been charged were accused of billing insurance companies up to $17,500 for the machine's use, which is market valued at under $500. They are further accused of workers' compensation fraud by representing themselves under multiple company names in order to collect benefits.

The medical equipment company purportedly continued the inflated charges to insurers for many years and operated by using ulterior tax identification numbers and other company information. Authorities believe they received over $36 million worth of compensation from their insurers through fraudulent billing. The men were discovered when they contacted the California Workers' Compensation Appeals Board to place liens against their insurers who would not provide benefits for their fraudulent billings.

The office of the defense attorney confirmed that three men involved were charged with numerous felonies, including workers' compensation fraud and conspiracy and a fourth man with only conspiracy. The person with a single felony charge could potentially serve five years in prison if found guilty by the courts and the others as many as 53 years. The terrifying outcome a California business owner could face when accused of workers' compensation fraud may lead a person to seek guidance and attempt everything possible to minimize potential prison time.

Source: businessinsurance.com, Calif. men accused of defrauding workers comp insurers of $36M, Sheena Harrison, Jan. 23, 2014

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