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The California
Department of Insurance has launched a new Web
site to fight against workers' compensation
fraud and spotlight the convictions of those
who cheat the system. The site, accessible on
the California Department of Insurance (CDI)
web site (www.insurance.ca.gov),
will provide regularly updated data on
workers' compensation fraud convictions in the
state. Assembly Majority Leader Dario
Frommer's legislation, AB 2866, served as the
impetus for the creation of the site,
Commissioner John Garamendi said.
"Public
awareness is the best sunshine to help stop
workers' compensation insurance fraud and its
devastating impact on the state,"
Garamendi said.
Assemblyman
Frommer agreed. "Cracking down on
workers' compensation fraud is the key to
lowering compensation rates," Frommer
said. "This web site will be a powerful
tool to stop scofflaws who cheat the system up
to $3 billion each year."
One of the
first cases featured on the web site is a
premium fraud case in which the owner of a
janitorial firm underreported his payroll to
his insurer and the Employment Development
Department (EDD). After a joint investigation
by the CDI Fraud Division and EDD, and
following prosecution by the San Bernardino
County District Attorney's Office, the owner
was convicted and sentenced to three years
prison, ordered to pay $747,762 in restitution
and paid a $600 criminal fine.
Further
conviction data will be posted on the CDI Web
site and updated monthly as information on
convictions and sentences are obtained.
(article
taken from Insurance Journal)
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