WCDefenseCA

Welcome back, dear readers!  2013 is gone (though not forgotten) and 2014 is here to usher in a new era of prosperity, joy, and peace… or maybe just more of the same – we’ll see!

One wonderful way to kick off the new year is a story about Jose Luis Guerrero, who, through his company Jose Martinez Tree Service Inc., under-reported more than $2 million in payroll over four years (March of 2005 to March of 2009).  He reported primarily clerical workers to State Compensation Insurance Fund, but his genius plan began to unravel when someone at SCIF noticed claims for a serious car-crash injury, and, later, the death of one worker after he FELL INTO A WOOD CHIPPER.

Does that happen a lot at your office, dear readers?  In my experience, most clerical workers are trained in avoiding the wood chipper that most offices place between the copy machine and the office fridge.

After a thorough investigation by SCIF and a prosecution by the District Attorney’s Office, Mr. Guerrero plead guilty to several counts of evading taxes, making fraudulent statements to reduce premiums, and making fraudulent statements to obtain or deny compensation, as reported by KFI AM.

It also appears that Mr. Guerrero plead guilty to possession of an assault weapon, so if you suddenly stop receiving these blog posts, you’ll be able to put two and two together.

Now, your humble blogger is not suggesting that Mr. Guerrero’s failure to properly report the nature of his business and the number of his employees lead to the anyone’s death or injury.  Quiet the contrary – by fraudulently avoiding costs there should have been more money available to provide safety equipment and a less hurried work schedule.

But, what your humble blogger is curious about, is who drafted this policy and who sold him this insurance?  We’re talking about a business called Jose Martinez Tree Service, and there is a huge clerical population among the employees?  Obviously, the fault lies with the now-convicted, but SCIF, like every insurer, should regularly make sure that whoever is selling its policies engages in due diligence.

Welcome to 2014!