There are various types of workers’ compensation fraud, one of which involves the submission of fraudulent claims. Employee fraud occurs when a worker intentionally files a false claim that contains false statements or conceals information to obtain benefits from the workers’ compensation program. Companies in California and elsewhere can suffer significant losses through such fraudulent claims, and many have protocols in place to identify claims that need further scrutiny.
Workers’ Compensation Fraud Control Unit investigators recently arrested a 49-year-old man in another state who allegedly collected workers’ compensation benefits to which he was not entitled. The arrest warrant affidavit indicated that the worker was a mechanic in the employment of a bakery when he filed a claim for workers’ compensation benefits. He apparently claimed to have suffered workplace injuries severe enough to prevent him from doing any type of work.
He was awarded benefits, but it was alleged that he subsequently performed several jobs despite his incapacitation. These jobs were allegedly all taken on while he was also receiving workers’ compensation benefits. The man is currently free on bond while he is awaiting a court hearing.
Employee fraud does not always involve claims for nonexistent injuries. In some cases, legitimate injuries are exaggerated to obtain long-term benefits that may allow the recipients to engage in additional employment, or even start a personal business while receiving workers’ compensation benefits. Every claim for benefits increases a company’s monthly insurance premiums — ultimately affecting company profits and even the wage levels of other employees. The services of an experienced California workers’ compensation fraud attorney may assist business owners in identifying and challenging fraudulent claims.
Source: workerscompensation.com, “Bronx Man Charged with Workers’ Compensation Fraud“, Dec. 9, 2015