Ok, dear readers, isn’t 2020 great?  We’re just getting started and it’s already Friday and time to put on our casual clothes to do work over the weekend in relaxation…  Well, that’s what your humble blogger is going to be doing at least.

In any case, let me ask you a question – have you ever caught an injured worker red-handed engaged in fraud only to have his or her attorney sarcastically point out to all the fraud that employers supposedly engage in?

Well, I sure have!

In fact, I stumbled upon this story here which covers the no-contest plea of Michael Zendejas who under-reported “roughly $4.9 million” in payroll to his insurer.  This resulted in considerable exposure for the insurer while at the same time depriving almost $1 million in premiums to help cover the risk.

Of course, it’s a lot easier to undercut one’s competitors if one doesn’t need to play by the same rules, right?

So, of course, there’s still fraud here, but the victim is the insurer that has to cover more exposure with fewer resources.

Mr. Zendejas was ordered to pay $944,718 in restitution to the insurer.

This type of fraud hurts everyone, and no less than when workers make up or exaggerate their injuries to get benefits – they raise costs on getting the good and/or services to the consumer, and so they raise costs on the consumer.  

I’m glad such ugliness is being concluded in 2019, and not spilling over into 2020, which has all the promise of being a glorious year.

See you at the office, dear readers!