Phil Cline, District Attorney, announces the awarding of $302,871.00 in grant funds by State Insurance Commissioner, John Garamendi, to investigate and prosecute Worker’s Compensation Insurance Fraud in fiscal year 2006 - 2007. The funding level includes a major increase to a program initiated in Tulare County in 1994 by Cline to combat the growing problem of premium fraud in our Central Valley Region. The monies support DA Criminal Investigators, Prosecutors and Investigator aides dedicated to fighting workers compensation fraud.

Workers compensation fraud is estimated to cost businesses and consumers nationally over a billion dollars a year. Millions are lost yearly in California. Phil Cline states: “Fraud affects everyone. It raises the cost of doing business which in many instances is passed through to the consumer. It impacts productivity and jeopardizes the basic ability of business to operate. But worst of all, it reduces our trust and confidence in one another even to the point that deserving individuals may be denied the protection of our system.”

A major new thrust of the program, in partnership with the District Attorneys of Fresno, Kern, Kings and Merced Counties and the Fresno Division of the Department of Insurance Fraud Bureau, is to combat the growing problem of premium fraud in the Central Valley through the Central Valley Premium Fraud Consortium. Premium fraud is the practice of misclassifying or under reporting employees in a business thus reducing the premium cost to the business. Such practices result in significant losses to the insurance company and the lack of coverage for legitimately injured workers. Because of the highly mobile and diversified activities of Central Valley businesses, violations take place in multiple counties. This task force style collaboration is designed to facilitate investigation and prosecution across jurisdictional boundaries. The Consortium developed by the Tulare County District Attorney’s Office is the first of its kind in California.



For additional information contact:

William Yoshimoto
Supervising Attorney
(559) 624-1054