LA, OC To Receive $8M For Crackdown On Workers’ Comp Fraud

LOS ANGELES (CBS) — The Los Angeles County District Attorney’s Office will receive a $5.7 million grant from the state Department of Insurance to help investigate and prosecute cases of workers’ compensation insurance fraud, officials announced Tuesday.

Prosecutors in Orange County will receive $3.5 million.

“Workers’ compensation insurance fraud is a costly problem in California,” state Insurance Commissioner Dave Jones said. “As the economy struggles to recover, fraud of this type creates an additional strain on the system.

Nearly $32 million in grants were awarded to district attorneys across the state.

“We must protect those injured workers who need care and compensation so they can return to work in a timely manner and bring to justice those who seek to cheat the system,” said Jones.

The grant funding comes from assessments on employers.

(©2011 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

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