Prosecutors Cracking Down on Uninsured Employers

By Marty Burleson

Recent Workers' Comp Fraud Convictions

The following people are among those who have pleaded no contest in recent months for filing fraudulent workers' compensation claims against Monterey County employers:

• ROGELIO MENDEZ GIL: Gil, a former employee of Dole Fresh Vegetables Company, worked without difficulty or complaint for a week after a July 1995 fall. Then he visited a doctor and claimed he couldn't stand for long periods, walk for long distances, climb stairs or drive a five-speed automobile. Gil, 25, last week received three years probation and 90 days detention which may be served in home confinement or work furlough. The company paid out more than $4,000 in medical expenses and more than $13,000 in investigation costs.
• JOHN DEREK MEE: Mee, another former Dole employee, reported a back injury in August and said pain prevented him from performing even light desk duties. While off work and receiving benefits, he was observed climbing beneath the foundation of a house and performing plumbing repairs. Mee, 50, in March was sentenced to three years probation, 90 days home confinement, 200 hours of community service work and restitution. The company paid out about $17,000 in disability and medical benefits.
• EDWARD EUGENE BORONDA: Boronda, an employee of Surf Tile in Monterey, filed a claim for a right elbow injury and said he couldn't work or lift anything as a result. Investigators discovered that Boronda was working for another tile company while receiving disability benefits from Surf Tile. Boronda, 39, in March was sentenced to three years probation, 60 days home confinement and 200 hours of community service work.
• IRENE SERRANO: Serrano, a former Monterey County employee said her ability to walk and dance was impaired by an on-the-job accident. She was videotaped dancing and walking normally on several occasions thereafter. Serrano, 58, last year was sentenced to three years probation, 90 days home confinement, $3,334 in restitution and 100 hours of community service work.

Monterey County prosecutors have zeroed in on fraud-minded employees; obtaining a series of recent convictions resulting in nearly $400,000 in fines and court-ordered restitution.

But those who fail to insure against their workers' legitimate injuries also are under the microscope, Monterey County Deputy District Attorney Angela McNulty said.

"The focus is not just on employees", she said. "A significant number of Monterey County employers do not have workers' compensation insurance."

State employment officials were unable to provide local or statewide estimates on coverage. McNulty knows only that violations are discovered from time to time, particularly in the agriculture and fishing industries. One well-publicized local prosecution involved Harjeet Singh, the former owner of Donuts N More in Salinas. A 25 year old employee shot and paralyzed during a 1994 robbery told police that Singh tried to drag him outside the store and identify him as a customer.

Singh, 34, didn't carry workers' compensation insurance and instead led a claim under his premises' liability policy, which covers customers but not employees.

The store owner pleaded guilty last summer to one count of felony insurance fraud - later reduced to a misdemeanor - and a misdemeanor violation of the state labor code. He was placed on three years' probation and fined $1,000.

"Occasionally, we do contact an employee who's been wronged", said McNulty, who currently is investigating a complaint by a person deformed in an on-the-job accident. "That happens a lot more than we really think about."

While employers may be quick to spot fraudulent insurance claims, however, aggrieved employees are less likely to come forward. McNulty said she'd like to change that.

"It's a crime to obstruct an employee from getting benefits", she said.

"But while it's easy to get word to employers, it's not so easy to get word to employees."

The Monterey County District Attorney's Office has launched a public outreach effort aimed at both parties. The office recently mailed 2,433 letters to county employers, McNulty said, and may put together a public service announcement featuring Monterey County District Attorney Dean Flippo.

Prosecutors also are addressing groups and may host a seminar on the subject, McNulty said.

Joanne Haworth, risk manager for Dole Fresh Vegetables Company, said she welcomes prosecutors' attention to workers' compensation fraud. But she'd like to see Monterey County judges adopt a tougher stance with convicted defendants, who currently receive no more than 90 days in custody - often in home detention - and restitution orders.

Employers can enhance the deterrence factor by making arrest as public as possible, Haworth recommended.

"When people see their co-workers arrested on the job site and taken away in handcuffs", she said "that message goes around real quick".