California Business Owner Arraigned in $1M Workers’ Comp Fraud Scheme

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The Golden State Entrepreneur Arraigned in $1M Employees’ Compensation Fraudulence Plan

Marion Piggee, Jr., 68, of Los Angeles, Calif., was arraigned on 7 matters of insurance coverage fraudulence after an examination by the California Division of Insurance policy disclosed he was apparently underreporting worker pay-roll by almost $6 million to minimize his service’s employees’ payment insurance coverage costs by over $1 million.

On Nov. 28, 2016, the State Settlement Insurance policy Fund submitted a presumed deceitful case with the CDI affirming prospective insurance coverage fraudulence. SCIF reported that Piggee, as proprietor of Facility for Behavioral Modification, a grown-up property treatment center, apparently underreported worker pay-roll to minimize the appropriate price of insurance coverage costs owed to SCIF.

A regular audit for the plan duration of Nov. 1, 2014, to Nov. 1, 2015, apparently discovered that Facility for Behavioral Modification reported one worker as well as pay-roll incomes of $8,035. Nevertheless, the audit apparently disclosed incomes to be $881,593 for the exact same plan year. It likewise revealed Piggee’s service had actually gotten employees’ compensation insurance coverage for one center, yet fell short to divulge they had actually likewise gotten 8 various other centers.

The examination discovered that Piggee had actually apparently been underreporting business pay-roll from November 2009 via May 2016. The examination likewise disclosed Facility for Behavioral Modification had 60 staff members, regardless of their coverage of just one worker. Business apparently underreported pay-roll by $5,982,410, which led to a superior loss to SCIF of $1,017,937.

Piggee was arraigned at the Los Angeles Superior Court on April 6. The instance is being prosecuted by the Los Angeles Area Area Lawyer‘s Workplace.

Subjects
California
Workers’ Compensation
Fraud

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