The Contra Costa County District Attorney's Office is committed to investigating and prosecuting workers' compensation insurance fraud and it is doing its share to tackle this problem.
Unit Inception In July 1992, a special unit specifically assigned to prosecute workers' compensation insurance fraud was created.
Since its inception, the Workers' Compensation Insurance Fraud Unit has successfully prosecuted cases resulting in jail time and court ordered restitution up to hundreds of thousands of dollars.
California Department of Insurance estimates that one out of every four workers' compensation claim is fraudulent in the State of California. This significant annual loss is money that could be used to keep employers' insurance premiums down. Filing a false claim or making false representations to obtain workers' compensation benefits can result in a felony conviction with a five year state prison sentence and a $50,000 fine. California law requires that all employers provide workers' compensation insurance for their employees. Employers who knowingly fail to provide proper insurance coverage for their employees not only place the injured worker and his/her family in financial peril, but are also committing a crime and can face jail time. It is a felony for employers to willfully lie on insurance forms so they can obtain lower premiums on their workers' compensation insurance. An employer committing, or anyone assisting in the fraud, can face five years in state prison and fines of $50,000 or more. It is also considered a form of unfair competition.