Fraud Assessment Commission

The Governor makes Commission membership appointments to serve a four-year term, or until the Governor appoints a replacement. Originally, the FAC was comprised of five individuals representing self-insurers, insured employers, workers' compensation insurers, and the President of the State Compensation Insurance Fund, an ex-officio member. In September 2003, with the passage of AB 749, two additional Commission members were added to represent organized labor. Presently, there are seven Fraud Assessment Commission members.

The following members comprise the Fraud Assessment Commission:

William Zachry - was appointed to the Fraud Assessment Commission in January 1999 and is the Chair representing self-insureds.  He is the Vice President of Risk Management, which includes Workers' Compensation, Liability, Safety and Loss Control for Safeway, Inc.  Under his leadership, the workers' compensation costs at Safeway have declined dramatically while improving the quality of medical care and benefits provided to their injured employees.  Safeway, Inc. is the third largest retail grocery company in the United States with over $38 billion in annual sales, 1700 stores, 30 manufacturing plants, 7 distribution centers and 170,000 employees.  

Over the last twenty years, he has specialized in workers' compensation issues and has published articles and spoken before industry and professional group organizations.  In 2006, he was nationally recognized with The Richard Bland Award from the Risk Insurance Management Society.  This award acknowledged his leadership role in California working with Governors Davis and Schwarzenegger and the Legislature to overhaul California's costly workers' compensation system as well as contributing to reform in other states.

Lilia Garcia - born and raised in East Los Angeles, was appointed to the Fraud Assessment Commission in June of 2007 representing labor.  Garcia is the executive director of the Maintenance Cooperation Trust Fund (MCTF).  The MCTF is a statewide janitorial watchdog organization that investigates janitorial contractors for employment law violations.  Over nine years of operation, the MCTF has assisted in the collection of more than 27 million dollars for immigrant janitors in the United States and Mexico, and has brought in more than 4,000 jobs from the predatory economy into compliance with minimal standards thereby providing a more stable employment for janitors and a level playing field for responsible contractors throughout California.

Carol Schatz - was appointed to the Fraud Assessment Commission in September 2003 representing insured employers.  She is the first woman to serve as President and CEO of the Central City Association (CCA), Los Angeles' premiere business advocacy organization representing major corporations, housing and commercial developers, law and accounting firms, and non-profits.  Carol also serves as President and CEO of the Downtown Center Business Improvement District (DCBID), a coalition of 480 property owners in the center of Downtown Los Angeles.  Under Carol's dynamic and determined leadership, CCA has undertaken several significant initiatives to transform Downtown.  She has marshaled state and local funding and incentives to help developers convert empty office buildings to housing.  This "Adaptive Reuse" initiative has resulted in over 10,000 new units of Downtown housing.  Her advocacy for Staples Center, the Civic Center and Figueroa Corridor has also brought new growth and development to these forgotten parts of Downtown.  Finally, it was Carol's vision that led to the creation of the DCBID.  With a budget of $5.3 million, the DCBID has made Downtown safe and clean and brought millions of dollars in new investment to Downtown LA.  Ms. Schatz was named by Los Angeles magazine in their "100 most powerful people in Los Angeles" article as one of the ten most powerful business leaders in Los Angeles.

James Little - a resident of Los Angeles County, was appointed to the Fraud Assessment Commission in March 2007 representing insured carriers.  He co-founded Employers Direct in December 2001 and has served as Chairman, President, Chief Executive Officer and Director since inception.  Jim has 40 years of experience in the workers' compensation industry, and Employers Direct is his second start-up in the workers' compensation arena.  From 1972 to 1979, he held several executive positions, including Chief Operating Officer for California at Employee Benefits Insurance Co., a workers' compensation direct writer.

Jim co-founded Pacific Compensation Capital Corporation in 1979, the parent of Pacific Compensation Insurance Company, a California workers' compensation insurance company.  Fremont Compensation Insurance Group acquired Pacific Comp in 1990, and Jim served as President and CEO of Fremont Comp from 1990 until his resignation in June of 1998.
 
Mr. Little provides leadership and business advocacy in California through his positions on the California Business Roundtable and on the Governing Committee of the California Workers' Compensation Insurance Rating Bureau (WCIRB).

Jiles Smith - was appointed to the Fraud Assessment Commission in May 2006 representing self-insureds.  He is the Risk Manager for Grainger Industrial Supply.  Prior to his position with Grainger, Smith worked as the Risk Manager for the Riverside Transit Agency (RTA).  Under his leadership, the RTA Risk Department launched an aggressive campaign to increase safety awareness and boost employees' understanding of workers' compensation fraud.  He has also held positions with JB Hunt Transportation where he was the Assistant Director of Safety, and Roadway Express where he was the Safety and Workers' Compensation Manager.

Lisa Middleton - was designated by the President of the State Compensation Insurance Fund as her designee to the Fraud Assessment Commission.  Lisa is the Senior Vice President, Internal Affairs responsible the Special Investigation Unit, Public Records Office and Internal Audit Department.    Lisa has 34 years of experience in workers' compensation, all with the State Fund including management assignments in Los Angeles, San Bernardino, Ventura, San Diego and the Home Office in San Francisc o.  She was responsible for the development of the State Fund/Kaiser Permanente Alliance program and the State Fund Preferred Provider Network.  During her four years in San Diego, the State Fund, Department of Insurance and San Diego District Attorney cooperated in over 75 convictions for workers compensation fraud.  In 2001 and 2004 she was honored at their Annual Meeting by the California Workers Compensation Institute; and in 2007 she delivered the keynote address at the Annual Conference of the California Society of Industrial Medicine and Surgery.

A unique resource, for nearly 100 years and through many economic cycles, State Fund has continually served California's employers and employees.   Established by the California Legislature the State Compensation Insurance Fund is a self-supporting, non-profit enterprise that provides workers' compensation insurance to California employers at cost with no financial obligation to the public.

Chuck Center - Represents Labor.

California Department of Insurance Workers' Compensation Medical Payment Accuracy Study
June 2008
by Navigant Consulting

Fraud In Workers' Compensation Payroll Reporting:
How Much Employer Fraud Exists?
How Are Honest Employers Affected?
A report presented to the Fraud Assessment Commission during the January 13, 2009 meeting.

Fraud Assessment Commission Meetings

The next public meeting of the Fraud Assessment Commission will be held on:

Wednesday, June 17, 2009
Click here for the Agenda for this Meeting

Previous Fraud Assessment Commission Meetings