Business Journal: Workers Comp Fraud Up


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(Sacramento, CA)
Monday, April 23, 2007
In 2003, there were just 417 instances of suspected fraud by California’s employers in the realm of workers compensation. Last year, there were just over 2,000, nearly a fivefold increase. Fraud by medical and legal providers is also on the upswing, more than doubling. The latest figures also show that California convicts more insurance swindlers than any state, and has the largest fraud division to track down the cheaters. Some cases are sizeable. Three Elverta residents owed close to $3 million after a they underreported the wages they were paying to employees.