Fraud in California
Friday, April 17 2009 - news, workers-compensation
In Los Angeles, two individuals were arrested for insurance premium fraud. They owned a janitorial business named Bell Building Company. Since 1998 they have been reporting to their insurance company that they were the only ones on payroll. However, they actually had a rather large company with hundreds working for them. The accusation leads to an estimate of over $4 million that the company should have paid to the carriers had they reported payroll honestly. Unfortunately this type of thing is easily avoided with a physical audit.
Facts from the California Department of Insurance press release