Staffing Firm Ordered to Pay $20 Million in Fraud Case
Staffing Services allegedly misrepresented the types and number of employees in order to pay smaller workers’ comp premiums, according to the California Department of Insurance.
Comments 0 | Recommend 0
January 26, 2010
Staffing Firm Ordered to Pay $20 Million in Fraud Case
A judge ordered Bellflower, California-based staffing firm Staffing Services
Inc. to pay $20 million in restitution after a plea bargain was reached in a
workers’ compensation fraud case, the California Department of Insurance
announced Monday, January 25.
Staffing Services allegedly misrepresented the types and number of employees
in order to pay smaller workers’ comp premiums, according to the office.
“Business owners have to realize that they have a moral and legal obligation
to report the correct number and types of employees and then make sure they have
adequate workers’ compensation insurance for those employees,” said California
Insurance Commissioner Steve Poizner.
The Department of Insurance investigated Staffing Services for 2½ years
before bringing charges against it November 26, 2008. The plea bargain was
reached January 15.
Staffing Services allegedly defrauded State Fund, a workers’ comp provider
established by the California Legislature, of more than $18 million in workers’
comp premiums from 2002 to 2005, according to the office. With penalties, the
amount negotiated during the plea bargaining amounted to $20 million.
Filed by Staffing Industry
Analysts, a sister company of Workforce
Management. To comment, e-mail editors@workforce.com.
Guidelines: Comments that include profanity or personal attacks or other inappropriate comments or material will be removed
from the site. We will take steps to block users who violate any of our posting standards, terms of use or privacy policies
or any other policies governing this site. You are fully responsible for the content you post.
If you enjoy the content on the Workforce Management Web site and want to see more, try 3 issues of our print edition risk-free. If you wish to continue, you will receive one full year for just $79. That's over 59% off the cover price. If you decide Workforce Management is not for you, just write "Cancel" on the invoice, return it and owe nothing. The 3 issues are yours to keep with no further obligation to us. Sign up below.
Offer valid for new Workforce Management Subscribers only.
Canada subscribers - $129. All other Foreign - $199.
Sponsored Tools
Still recruiting with Excel & Outlook? PCRecruiter is the logical next step, and the transition is easy. Try it today!Pre-Employment Testing Know your employees before you hire. Aptitude, personality, skills tests. Free Trial.Top Recruiting Software Fully Branded Career Site! Flexible Applicant Tracking. Free White Papers & DemoTime & Attendance Systems Easily collect time data with our exclusive clocks, and manage it through our software, TimeForce.Full Service Human Resources We can Save you Time and Money on your Human Resources over a cup of Coffee
= Member Only
