New Workers’ Comp Anti-Fraud Proposals

Administration officials say a series of stakeholder meetings to brainstorm ideas for combating the state’s workers’ comp fraud problems are producing potentially workable solutions. Department of Industrial Relations Director Christine Baker says her team is finalizing a proposal that could be taken to the Legislature before the end of this legislative session. “Efforts are underway … Read More »

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Dual Wage Threshold Calculation Changing

The Workers’ Compensation Insurance Rating Bureau is moving to change the way it calculates and updates the wage threshold for the 18 construction classifications in the state’s dual wage system. The result is intended to make it less burdensome on both employers and the Bureau while offering more timely updates. It might even help cut … Read More »

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New Charges In Chiropractor Fraud Case

A Riverside County chiropractor nicknamed ‘The Godfather’ who controlled numerous health clinics is back in court for allegedly running a multi-million-dollar medical mill built on the use of cappers to recruit workers’ comp claimants. A grand jury issued indictments against Peyman Heidary and six others on charges related to the alleged scheme that hit at … Read More »

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Fraud Charges Reinstated Against Paving Company Officials

The owners and operators of a Southern California asphalt paving company are once again facing criminal charges for workers’ comp insurance premium fraud, failing to pay payroll taxes and allegedly stealing $2 million in wages from its employees. The Fourth District Court of Appeal reinstated the criminal charges against five individuals associated with the firms … Read More »

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Fraud Scheme Busted, More Arrests To Come

Federal prosecutors unsealed three grand jury indictments in an alleged $25 million workers’ comp fraud scheme to pay chiropractors for patient referrals for durable medical equipment, MRIs, X-Rays and specialized services like shockwave therapy. Prosecutors say this was just the “first wave” of arrests in a widespread bribery and kickback scheme and that additional arrests … Read More »

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Carrier’s $3.5M Lawsuit Goes After Alleged Ringleaders

A Southern California District Attorney is already pursuing criminal charges against four defendants for allegedly bilking workers’ comp carriers out of millions by over billing for durable medical equipment. Now six companies in the Farmers Insurance Group have sued and are seeking to recoup approximately $3.5 million from the Aspen Medical Resources and National Marketing … Read More »

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Alleged Drug Testing Case – Employers X-Mods Could Be Affected

The Alameda County District Attorney’s office is pursuing fraud charges against an orthopedic surgeon and his office manager for billing six workers’ comp carriers for medical services that it alleges were never provided. Investigators allege that they discovered at least 30,000 fraudulent bills filed for bogus supplemental reports related to drug screenings. “If the case … Read More »

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Alleged $50 Million Workers’ Comp Fraud Mill Broken

A Riverside County chiropractor that prosecutors say ran a fraudulent billing scheme and defrauded multiple workers’ comp carriers out of millions of dollars is in jail, while three alleged accomplices have posted bail. Peyman Heidary, AKA the Godfather, was still in the custody of the Riverside County Sheriff’s Department as of press time under a … Read More »

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