Worker Charged With Employee Fraud

January 01, 2016
Sacks & Zolonz, LLP
Workers’ Compensation Fraud

Truth is a virtue, as the saying goes. This is especially true in the California workplace. However, there are times when some individuals do not seem to value telling the truth. In the business world, this can become a problem, which could lead to a case of employee fraud.

This is what happened in a case that recently resulted in a 56-year-old man being arrested. He had apparently been collecting insurance benefits via workers’ compensation in his state when he should not have been eligible. It turns out the man had been working and earning money as a bartender on the weekends despite the fact that he claimed not to be working at all. He collected approximately $24,584.60 in benefits.

The man has been charged with several felonies, including third-degree grand larceny, third-degree insurance fraud, and first-degree falsification of business records, along with fraudulent practices under workers’ compensation. Not only does this result in legal problems for the employee, but it also causes financial problems for the employer. When employees fraudulently file workers compensation claims, the employer’s insurance company is likely to raise premiums charged to the employer. Furthermore, it undermines the claims of legitimately injured employees who actually need the benefits in order to get through their recovery.

Employers should always be on the lookout for potential employee fraud when workers file for benefits in California. Catching employee fraud early can help avoid significant financial damage to the employer’s business profits. Many times, taking legal action will be necessary after an employer discovers one or more employees committing workers compensation fraud.

Source:, “Two Elmira Men Charged With Workers Comp Fraud – Story“, George Kastenhuber, December 21, 2015

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