Fraud can be tricky to deal with, dear readers.  Often enough, combating fraud can be considered in an equation form: how much money does each individual act of fraud cost multiplied by the ability to detect said fraud.  That’s why SJDB voucher fraud is such a nasty animal.

The maximum exposure for the SJDB voucher fraud is $6,000, and some fraction of the $5,000 return to work fund provided by the state which is replenished by employers and insurers every year.  So, when an injured worker is suspected of engaging in fraud related to a voucher, the incentive in investigating the fraud and referring it for prosecution is rarely there: what are the odds that well over $6,000 will be spent by the time the jury is empaneled?

We occasionally see some action taken against such fraud, but the individual claimants are too small a target and the big game is the vocational rehabilitation outfits themselves. The latest of these is the Computer Institute of Technology.  As alleged, the school submitted fraudulently documents to insurance carriers for classes never actually provided.  There are also allegations of forged signatures for injured workers.

If you received bills from the Computer Institute of Technology, you might consider reaching out to the Los Angeles County District Attorney’s office to see if you were billed for services that were not actually performed. 

Speaking more generally, the nay-sayers might claim that there is no harm to victims when such fraud occurs: after all, the voucher is for a set sum and, if issued, the insurance company was not contesting liability.  I say any to those nay-sayers!

The victims of fraud are often many, and the case is true here as well.  First, the injured workers are being hoodwinked out of a benefit to retrain and develop new skills.  Second the insurers are being defrauded as well – a benefit may very well never have been used and is being exploited to line the pockets of criminals.  So, this fraud does real damage, driving up costs and lowering the available resources available for benefits and wages.

Your humble blogger says – if you suspect voucher fraud, even if it will not be the case of the century, investigate and report it! Every bit of fraud the defense community ignores, tolerates, or decides to just absorb encourages more fraud.