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CA Department of Insurance

Postal worker charged with workers’ compensation fraud

News: 2014 Press Release

For Release: May 28, 2014
Media Calls Only: 916-492-3566
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Postal worker charged with workers’ compensation fraud

BANNING, Calif. - Jackie Sebastian, 60, from San Jacinto was arrested by Department of Insurance detectives May 22, 2014. Sebastian, a Postal Service Mail Processing Clerk, is facing felony insurance fraud and grand theft charges for submitting 249 false claims for mileage reimbursements associated with an allegedly fraudulent workers' compensation claim.

"Some individuals are under the misconception that cheating the workers' compensation system a little bit is not going to land them in trouble," said Commissioner Dave Jones. "These small deceptions can quickly add up to a significant amount of money. Honest consumers are punished for these crimes by paying increased premiums to make up for the fraud loss."

A joint investigation revealed that Sebastian had filed a workers' compensation claim for $65,273.43 for transportation costs associated with mileage to and from her medical appointments. Sebastian filed a total of 249 claims and received $13,990 for mileage reimbursement, which according to department detectives was not associated to any legitimate medical or pharmacy visits.

If convicted Sebastian faces a maximum of five years in jail, a possible fine and full restitution. This was a joint investigation between the California Department of Insurance, the United States Postal Service Office of Inspector General and the United States Department of Labor Office of Inspector General.


Media Notes:

  • Arrest photo available.
  • Prosecuting authority: Riverside County District Attorney's Office.
  • Booking location: Riverside County Sherriff's, Larry D. Smith Correctional Facility, Banning, CA.

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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