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Insurance Commissioner Dave Jones and Monterey County District Attorney Announce Workers' Compensation Fraud Grant

News: 2012 Press Release

For Release: June 28, 2012
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov

Insurance Commissioner Dave Jones and Monterey County District Attorney Announce Workers' Compensation Fraud Grant

Insurance Commissioner Dave Jones, joined by Monterey County Assistant District Attorney Stephanie Hulsey, today announced the award of a $600,000 grant by the Fraud Assessment Commission to fight Workers' Compensation Insurance Fraud. This award will assist the Monterey County District Attorney with the investigation and prosecution of fraud of this type. 

"Workers' Compensation Insurance Fraud is a serious problem that strains the system designed to protect California's workers," said Commissioner Jones. "The underground economy that is often created by this type of fraud also negatively impacts honest employers and healthy competition in California business."

Assistant District Attorney Stephanie Hulsey said, "The Monterey County District Attorney's Workers' Compensation Enforcement Team collaborates with the California Department of Insurance as well as local agencies to ensure the enforcement of the laws such as Workers' Compensation Insurance laws, which protect workers and employers."

Some of the recent cases prosecuted, include:

  • FY 2011/12 (as of 4/15/12) - 16 convictions (3 felony, 13 misdemeanor), including the conviction of chiropractor for filing false and deceptive claims;
  • FY 2010/11 - Conviction of three individuals, including one medical provider, for Employer Defrauding Employee related offenses.

Every year, the Fraud Assessment Commission determines the grant funding based on assessments placed on California employers. CDI leads the Workers' Compensation Grant Review Panel that reviews and makes grant funding recommendations based on multiple criteria including previous year performance based on application submitted by counties. Subsequently, the panel then sends a recommendation to the Insurance Commissioner who either accepts or amends the panel's recommendation. Upon completion, the Commissioner's recommendation is submitted to the Fraud Assessment Commission for their advice and consent.

CDI announced the 2013 Grants last week in a press release found at http://www.insurance.ca.gov/0400-news/0100-press-releases/2012/release077-12.cfm.



Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

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