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News: 2012 Press Release
For Release: August 30, 2012
Media Calls Only: 916-492-3566
Insurance Commissioner Dave Jones and Riverside County District Attorney Announce Workers' Compensation; Automobile Fraud Grants
Insurance Commissioner Dave Jones, joined by Riverside County District Attorney Paul Zellerbach, today announced $2.4 million in grants to the Riverside District Attorney's Office to fight Workers' Compensation and Automobile Insurance Fraud. These funds will assist the Riverside County District Attorney with the investigation and prosecution of fraud.
"I am pleased today to announce $2.4 million in grants to the Riverside District Attorney to fight workers' compensation and auto insurance fraud," said Commissioner Jones. "Workers' Compensation Insurance Fraud drives up the cost of workers' compensation insurance and hurts honest businesses and our economy. Auto Insurance Fraud drives up the price of auto insurance for consumers."
"Riverside County's large population and current economic strife has resulted in economic instability and increased unemployment. That, unfortunately, has significantly contributed to increased workers' compensation and automobile insurance fraud throughout the Inland Empire," said District Attorney Paul Zellerbach. "It is through these types of collaborative efforts with the California Department of Insurance that continue to allow this office to actively investigate and prosecute these types of crimes which have a significant negative impact on our local economy. In addition to investigating and prosecuting fraud, the District Attorney's Office conducts considerable public education and outreach programs to inform our citizens which assists in deterring fraud from occurring in the first place."
One of the top priorities of Insurance Commissioner Jones is to fight insurance fraud. The California Department of Insurance investigates insurance fraud and then works with the District Attorney of each County, who prosecutes the fraud. The Insurance Commissioner awards anti-fraud grants to assist the DA's to prosecute these types of fraud.
Riverside County was awarded three grants to combat fraud in 2013:
- $1,488,786 to combat Workers' Compensation Insurance Fraud
- $650,000 to combat regular Automobile Insurance Fraud
- $336,247 to combat Organized (Urban) Automobile Insurance Fraud
Recently, CDI Detectives and Riverside County District Attorney Investigators, joined by Investigators from the Employment Development Department and Contractors State Licensing Board conducted a sweep known as "Operation Underground" which netted contractors in violation of state Workers' Compensation Insurance regulations.
CDI announced the 2013 Workers' Compensation Insurance Fraud Grants in a press release in June.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California, regulating the $123 billion insurance marketplace. In 2012 the California Department of Insurance received more than 160,000 calls from consumers and helped recover over $64 million in claims and premiums. Please visit the Department of Insurance web site at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Out-of-state callers, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.
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