San Bernardino County DA Cracks Down on Workers’ Comp Insurance Fraud

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It’s just a fact of life for California business owners? they must carry the proper workers’ compensation insurance to cover their workers in case of injury. Unfortunately, some businesses don’t follow the rules. According to an article from the VVDailyPress.com, businesses in San Bernardino County, Calif., that don’t follow the rules will now be breaking the law at their own risk because the District Attorney’s Office and the California Contractors State License Board are joining forces to crack down on businesses that don’t carry workers’ compensation insurance. (There will also be thousands of unregistered businesses that fail to file workers’ compensation.)

And investigators have been busy. The article notes that approximately 70 people in construction-related work have been checked for compliance in just a two-month period and more compliance checks are planned. The agencies take this fraud very seriously? ”’Workers’ comp fraud is a crime that victimizes every honest business and taxpayer in San Bernardino County because they are forced to take on the unnecessary burden of higher premiums,”’ said the district attorney.

The investigations have revealed some good news. Most contractors checked so far are in compliance. Four businesses were not in compliance and were ordered by the state to shut down operations until they obtained the proper insurance.

Source: Today’s ”Fraud of the Day” is based on an article entitled, ”DA cracks down on workers’ comp insurance fraud,” by Tomoya Shimura, published by the VVDailyPress.com, December 25, 2011.

In response to some contractors failing to carry workers’ compensation insurance, the San Bernardino County District Attorney’s office has partnered with the California Contractors State License Board to crack down on the fraud.

Investigators from the two agencies have conducted compliance checks with about 70 people involved in construction-type work at their job sites in Redlands and Rancho Cucamonga during the past two months, according to a press release from the DA’s office. Investigators haven’t done checks in the High Desert yet, DA’s Senior Investigator Steve Rivera said, but they plan to come up here, too.

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