CRMBC Investigation Snags Another Workers' Compensation Fraud Suspect

SACRAMENTO, Calif., June 12, 2012 /PRNewswire/ -- The California Restaurant Mutual Benefit Corporation (CRMBC) announced today that the Fontana Police Department has arrested Corrina Montenegro in connection to Workers' Compensation insurance fraud.  Montenegro has been charged by the San Bernardino County District Attorney on three felony counts of insurance fraud and one felony count of perjury in connection to an alleged work injury filed as an employee of a San Bernardino Burger King Franchise.

Montenegro's arrest comes on the heels of CRMBC's May announcement of the arrest of Emmanuel de Paz, a former Jack In the Box employee who was arrested in Los Angeles on 3 felony counts of fraud and 2 felony counts of perjury.

"Fraudulent activity is crippling to California's small business and we hope today's announcement coupled with May's arrest will send a clear message to those contemplating Workers' Compensation abuse," said David Mitchell, Chair of the CRMBC Board of Trustees. "We will continue to pursue Worker's Compensation fraud claims aggressively and to the full extent of the law."

Fontana Police arrested Montenegro on a routine traffic stop. CRMBC's program is administered by claims administrator, American Claims Management (ACM), who identified red flags in the claim and referred it the J.D. Wesson & Associates, Inc., the Special Investigative Unit (SIU) responsible for reviewing, investigating, and referring suspected claimant fraud to law enforcement within the program.  CRMBC SIU investigators are either former peace officers with the Department of Insurance, Fraud Division or District Attorney Insurance Fraud Unit and work closely with law enforcement in providing the necessary information for a successful criminal investigation.  CRMBC SIU investigators presented the suspected fraud activity of Montenegro to California Department of Insurance, Inland Empire Regional Fraud Office.

Montenegro claimed to have slipped and injured her knee while carrying boxes in December of 2010.  It is alleged that Montenegro used whiteout to alter the disability slip and fall incident to extend the period of temporary total disability.  Based on a criminal investigation conducted by the Department of Insurance, Fraud Division, multiple charges of insurance fraud and perjury have been named in relation to Montenegro's claim. Arraignment for Montenegro is scheduled for July 26, 2012.

The California Restaurant Mutual Corporation is the largest self-insured group for Workers' Compensation in California.

SOURCE California Restaurant Mutual Benefit Corporation (CRMBC)