Workers' Comp Fraud Convictions Spiral

Dishonest employees continue to prey on the workers' compensation system by making fraudulent claims and seeking to extend benefits longer than necessary, but employers are playing a vital role in identifying the cheats. New data from the California Department of Insurance show that prosecutors were able to secure convictions against 103 individuals in 2011 for various fraudulent acts against the workers' comp system.
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Crackdown on Underground Economy...Misclassifcation

Federal and state officials are joining forces to crack down on companies in California that improperly classify workers as independent contractors. 
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L.A. County prosecutors seal deal on conviction of former officer

Los Angeles County prosecutors sealed the deal on the conviction of a former school safety officer in a case that cost the county north of $400,000.

Also convicted, Christie Ann Murphy was sentenced to 180 days in jail and given 5 years probation. A source in the Sutter County District Attorney's office says she was also ordered to repay Travelers nearly $37,000 in restitution for her crime.

And in Ventura County, prosecutors won a conviction against Hector Rocha Villasenor in a case that included an estimated $42,000 in fraudulent payments. Villasenor was convicted of making a knowingly false or fraudulent statement to obtain compensation.

Facebook and Social Networks Used To Catch Fraudsters

Bad actors continue to prey on the workers' compensation system and employers and carriers are paying the price for their fraudulent activity. New tools are being used to combat employee or claimant fraud including social networks such as Facebook.

But new data from the California Department of Insurance (CDI) show that claims administrators, suspicious employers, special investigators and others can aid in the fight by using social networks and smart interviewing techniques to uncover information that leads to prosecutions.  In 2011, the Department says good information helped catch and then convict 103 individuals for various fraudulent acts in and around the workers' comp system.

The dark lining to this silver cloud is that many more cases are still going undetected. And as the 2011 convictions indicate each act of fraud is not only costly to payers -- the overall impact of fraud exceeds $1 billion annually, according to CDI estimates.

California Court of Appeal Throws Out Red Light Camera Ticket

Red light cameras are coming under increasing legal fire in the Golden State. On Friday, California's second-highest court published a ruling that struck down red light camera evidence as insufficient to convict a motorist. On June 3, 2009, a camera belonging to the Australian firm Redflex Traffic Systems accused Annette Borzakian of entering the Beverly Hills intersection of Beverly Drive and Wilshire Boulevard 0.28 seconds after the light hand turned red.
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Fullerton Police Chief to Step Down

Police Chief Michael Sellers, who has faced public criticism in connection with the death of homeless man who was beaten in a confrontation with officers, will retire this month, according to a statement from the city of Fullerton. Sellers filed a workers’ compensation claim that will be settled.

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NFL Workers' Comp Fight Could Cost Hundreds of Millions

If the Super Bowl had been in California, every player on both teams possibly could file workers’ compensation claims in the state, even if they don’t play one snap, as 3,700 other players already have done.
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