Restaurant Self-Insured Group Wins Third Work Comp Fraud Conviction

October 26, 2009

- California Restaurant Mutual Benefit Corporation Has Two Cases Pending

SACRAMENTO, Calif., Oct. 26 /PRNewswire/ -- The California Restaurant Mutual Benefit Corporation (CRMBC) announced today another conviction for felony Workers' Compensation fraud committed against one of its employer members. Armando Landa pleaded guilty in Ventura County to one count of Work Comp fraud after being arrested for collecting benefits illegally and making false statements while an employee of CRMBC member Chicago for Ribs in Ventura.

Landa received over $30,000 in tax free disability payments while receiving treatment over a 15 month period. During this period he took a job at another restaurant. At a deposition following his arrest, Landa denied working at any job since the injury. Intercare, the claims management company working for CRMBC, used its fraud investigation unit to develop information for the California Department of Insurance, Fraud Division. The District Attorney for the County of Ventura prosecuted the case.

"Fraud hurts everybody," commented David Mitchell, Chair of the CRMBC Board, the largest California Workers' Compensation program of its kind. "Employers face a challenging economy and Work Comp fraud makes it that much tougher. It can cost jobs. Our aggressive anti-fraud campaign is one of the reasons that we have been able to cut costs for our employer members."

CRMBC employer members have 24 hour access to nurses for claims support through the CHSI Solutions Hotline. The CHSI Hotline also features a confidential fraud report service. CHSI, the program administrator for CRMBC, has built a secure member website for real time access to claims information and safety resources and has developed Connections, a patent pending web based management system for Workers' Compensation self-insured groups and captive insurance programs.

"Work Comp fraud goes beyond the few employees who abuse the system," said Ron Paine, Vice President of Risk Control for CHSI. "Phony providers and double billing are a major problem. Employees can be taken advantage of by unscrupulous attorneys. Our new One Source doctor network and our employee support program are going to help us in beating Work Comp fraud."

About CRMBC:

The California Restaurant Mutual Benefit Corporation is the state's largest Workers' Compensation self-insured group. It began operations on January 1, 2005 and is regulated by the Office of Self-Insurance Plans, Department of Industrial Relations. www.crmbc.com

About CHSI:

CHSI manages Workers' Compensation self-insured group programs in California and Nevada that have returned over $22 million to employer members. With nearly $2 billion of employer payroll in its self-insured groups, CHSI has developed patent-pending technology for program management to support the company's continued expansion. www.chsi-nv.com

SOURCE California Restaurant Mutual Benefit Corporation