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Plea in a fraudulent workers' compensation claims case

Producing fraudulent workers' compensation claims means falsifying information, including medical costs and other expenses. Dishonest claims become fraudulent when they are provided to an employer, or provided by the employer to the city or insurance company. When a former CEO made her plea in a fraudulent workers' compensation claims case recently, the California woman was ordered to provide additional restitution.

The woman was accused of changing invoices to reflect inflated numbers paid to spinal implant manufacturers, which were then sent to the city and county. These documents held fraudulent numbers that had the potential to provide financial gain due to devastating situations. In the end, the former CEO of the California spinal implant company pleaded no contest to the four felony charges of insurance fraud, in connection with workers' compensation reimbursements.

Sentencing for the woman included six months of probation and a $50,000 fine for erroneous charges to the county and city. This is in addition to the $130,000 that she had already been forced to pay. In this particular case, justice was served for the workforce in the state of California.

It has been reported that fraudulent workers' compensation claims affect all California companies, and ultimately cost employers more money. In situations where a person is trying to profit from a workers' compensation claim, the employer may feel angry and taken advantage of. It can be difficult to determine where to begin when someone has received compensation and insurance benefits for false information. In situations like this one, legal guidance can be helpful and beneficial.

Source: Silicon Valley Business Journal, Former CEO of implant company pleads no contest in fraud case, Vincent Lara-Cinisomo, Oct. 18, 2013

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