On May 28th, 2021, a Van Nuys construction company owner was accused in court of felony charges for insurance fraud. The California Department of Insurance (CDI) investigation found that the owner had supposedly underreported his employee payroll by $70 million. This underreporting of wages would have lowered his company’s workers’ compensation insurance premiums by an astounding $25 million.
What is Premium Fraud?
In California, Premium fraud is when an organization or a business intentionally falsifies documents and reports to receive benefits that they would not legally be entitled to under lawful circumstances. This crime can range from a misdemeanor to a felony charge. The allegations are severe and can carry a legal penalty of up to 5 years in jail.
Insurance Fraud Hurts Everyone
While workers’ compensation fraud can happen from employees and employers, the ladder usually has worse potential consequences. When a business falsifies documents to lower its insurance premiums, it does not contribute to the state insurance fund used to pay workers injured while on the job. Per state law, an organization with employees must purchase workers’ compensation insurance. By defaulting on this requirement to pay their fair share into the state insurance fund, businesses that pay their fair share are most affected by the inequity of their contributions.
Tips To Win Your Workers’ Compensation Claim
Report your injury. Reporting your injury as soon as possible is vital in winning your case. If you wait too long to say, you could be deemed ineligible to receive compensation for your injuries.
Receive medical treatment immediately. Not only will seeking medical treatment help you recover from your injuries. It also serves as evidence that you were injured.
Understand your benefits—awareness of the benefits you are entitled to is essential for winning your case.
Could you document and record your claims and injuries? You can ensure your claim is approved by keeping a record of every transaction and doctor’s visit.
Conclusion
A construction company owner was accused in court of felony charges for insurance fraud. The California Department of Insurance (CDI) investigation found that the owner had supposedly underreported his employee payroll by $70 million. In California, premium fraud is a hefty offense carrying a potential jail sentence of five years. Suppose you or a loved one is a workers’ compensation fraud victim or suffered an injury while on the job. All it takes is a phone call to Sacramento Workers’ Compensation Attorneys, P.C., to get one step closer to the compensation you deserve.