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Wednesday, 24 April 2013 22:09

CDI Uncovers Elaborate Workers’ Comp Insurance Fraud in 4-Year Investigation

The California Department of Insurance (CDI) arrested Robinson Yang, 44, Roland Yang, 43, and Sotheany “Teny” Hul, 42, of Diamond Bar, CA, on multiple counts of theft, fraud and forgery.

The three suspects are accused of producing and selling hundreds of false certificates of insurance for workers’ compensation insurance. All three were booked between March 22 and April 3, 2013 and are being held pending bail hearings.

The CDI said, after a four-year investigation, the counterfeit workers’ compensation insurance leaves injured workers without benefits, hundreds of victims in 19 states and losses exceeding $700,000.

“The greed and deception of these three individuals is egregious,” said Commissioner Dave Jones. “This illegal activity not only left honest businesses unprotected, but also put the health and recovery of legitimately injured workers in jeopardy.”

In April 2009, the CDI Fraud Division and the Employee Development Department (EDD) began investigating Optima Staffing for defrauding their clients by producing and selling hundreds of false certificates of insurance. RJC Insurance Brokerage and Optima Staffing were allegedly selling forged certificates of insurance for workers’ compensation insurance coverage.

According to detectives, the suspects facilitated the theft by establishing three payroll service companies, Optima Staffing, United Employer Services (UES) and National Employer Services (NES), in the effort to provide a legitimate facade for their fraudulent scheme.

In addition to the insurance fraud and forged certificates of insurance, Optima also allegedly evaded income and unemployment insurance taxes.  In addition to the failure to pay taxes, EDD also discovered that Robinson Yang was collecting unemployment benefits while being compensated by the Optima, UES and NES.

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