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Man accused of $50 million worth of workers' compensation fraud

A business owner may find themselves in a difficult situation if they are accused of workers' compensation fraud by the government or an insurance company. A California chiropractor was recently prosecuted for his potential involvement in one of the state's largest ever workers' compensation fraud cases to date. The man is accused of being the ringleader of a group responsible for funneling $50 million dollars worth of insurance benefits from insurance providers and the state.

The group of people accused of fraud purportedly ran medical facilities in multiple counties across California. The clinics may have filed thousands of workers' comp claims for patients that did not exist and for injuries that had been inflated. The amount billed to insurance companies over time for the benefits reached close to $50 million.

Investigators from the State Fund and District Attorney's Office discovered that around $5 million had also been fraudulently collected from the state. Through review of alias names they found that the accused man was listed as the proprietor for close to 13 clinics and offices located in multiple locations with different business names and purposes. Former medical facility locations were also discovered that had been shut down.

Authorities detained three others employed by the accused man and have charged the group with 22 counts of fraudulent healthcare benefit claims per person. This is in addition to other felony charges divided up among the four potential perpetrators. A California business owner that is discovered to have participated in potential workers' compensation fraud may seek a professional to help minimize the financial responsibility and punishment if found liable.

Source: ocregister.com, "'Godfather' accused of $50 million workers' comp fraud", Brian Rokos, Sept. 5, 2014

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