News: 2008 Press Release

LOS ANGELES ― Insurance Commissioner Steve Poizner today announced the arraignment of a fraud perpetrator for scamming two insurance carriers, UnumProvident and Liberty Mutual, out of more than $117,000.

"When someone defrauds an insurance company, policyholders suffer through higher rates," said Commissioner Poizner. "This illegal behavior is unfair and will not be tolerated under my watch."

A Department of Insurance (CDI) investigation revealed that after allegedly suffering an injury in 2004, Dr. Alice Berkowitz of Los Angeles filed claims with two private insurance carriers for long-term disability. Berkowitz claimed that her injuries resulted in her inability to work as a clinical psychologist for the remainder of 2004. During the period of Berkowitz's alleged injury, she collected more than $117,000 in benefits from two insurance companies. CDI investigators discovered that Dr. Berkowitz continued treating patients during the time she claimed to have been injured. The investigation further revealed that Berkowitz received payments from as many as 40 patients, amounting to more than $140,000.

On December 11, 2007, Berkowitz surrendered to CDI fraud investigators and was booked on multiple counts of insurance fraud and grand theft. On January 3, 2008, Berkowitz was arraigned in Los Angeles County Superior Court. If convicted, Berkowitz could be sentenced to up to five years in state prison, a fine of up to $50,000, and court-ordered restitution to the insurance companies she allegedly defrauded. Berkowitz's next court hearing is scheduled for March 6, 2008 in Los Angeles County.

This case is being prosecuted by the Los Angeles County District Attorney's Office.