General Contact Number: (530) 621-5567

District Attorney

Insurance fraud is a felony.
Those who commit fraud are criminals.
Easy money? Hard time. Insurance fraud is a felony.
5 years in state prison. $50,000 fine.

The California Department of Insurance Fraud Division together with district attorneys, insurers and employers will investigate and prosecute persons suspected of insurance fraud crimes.

What's the big deal?

  • The high cost of doing business in California includes the high cost of insurance fraud.
  • "Some people see nothing wrong in committing insurance fraud.
  • "Insurance premiums are too high. I deserve to get something back."
  • "My employer's insured; he can afford to cover this."
  • "Insurance companies are big organizations. What can it cost for one measly little claim?"
  • "Everybody does it. What's the big deal?"
  • The "BIG DEAL" is that widespread insurance fraud ultimately translates into higher premiums, which can result in elevated costs of goods and services, and, ironically, layoffs, plant closures, and out-of-state relocation.

Insurance fraud is a "growth industry" costing Californians billions of dollars annually. Fraud is about big money, and as long as that money is out there, someone will be after it. 

 Workers' Compensation Insurance Fraudimage of Jail Bird

  • From 10% to 30% of the $10 billion in workers' compensation claims filed annually in California are fraudulent, costing California businesses and consumers a reported $1 billion to $3 billion per year. Both medical mills and legal mills specialize in recruiting so-called patients to bilk insurance carriers for fraudulent or non-existent services.
  • An employee knowingly files a claim for an injury that did not occur at all, or for an injury that did not occur on the job or in relation to the job.
  • An employee receives total temporary disability benefits as a result of lying about outside employment, re-employment, or their ability to work.
    A medical or legal provider bills for services that were never provided.
  • A medical or legal provider regularly bills for more time than was actually spent seeing a client or for more services than were actually provided.
  • Kickbacks are given to insurance representatives or employees as an inducement or reward for the referral or settlement of a workers' compensation claim.

Auto Insurance Fraud

Every insured Californian pays from $200 to $250 a year for inflated and fraudulent auto claims (according to a Rand Corporation study).

Auto Property Fraud:

    • False reports that parts of vehicles have been damaged or lost
    • False reports of vehicles stolen or vandalized

Staged Accidents:

    • Creation of accidents that exist only on paper
    • Preplanned maneuvers that set up an innocent party for a rearend collision

Real Estate Fraud

  • Report suspected fraud involving recorded real estate documents
  • The California Legislature has placed an emphasis on fraud against individuals where residences are in danger of, or are in, foreclosure

Other Insurance Frauds

  • False health-related treatment claims
  • Other medical/legal provider claims
  • False life insurance claims
  • Property claims, including arson

This information is from the California Department of Insurance


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