Sacramento, CA (PRWEB) June 19, 2006
Dozens of handicapped injured workers are expected to clog the offices of the Department of Insurance Fraud Unit headquarters tomorrow (June 20th) as the privately funded Fraud Assessment Commission meets to dole out nearly $40 Million in work comp fraud enforcement cash to district attorneys and Insurance Commission John Garamendi’s fraud unit.
“We oppose the strings attached to these private funds that seem to be cloaked with the respectability of state government, when in fact, these funds are nothing more than private bribes, gratuities and kick-backs. Why isn’t public money used if work comp fraud by small-fry cheats is really a serious problem; it just isn’t,” said work comp activist Larry Nign.
“It is particularly offensive to disabled injured workers to be labeled as work comp cheats by private corporate officers of the likes of William Zachry of SAFEWAY, Inc., who is in charge of the disbursement of $40 Million to county district attorneys and the Department of Insurance,” said Nign. Nign called for the resignation last week of Zachry from the fraud commission as Zachry is also in charge of the self-insured work comp program at SAFEWAY of Pleasanton, California (traded as SWY on the NYSE).
“It is a one-way street. District attorneys have never prosecuted an attorney or claims adjustor even though presented with overwhelming evidence. They simply bust 'little guy' small fry work comp cheats for a few thousand dollars here and there to perpetuate the hoax and scam that massive work comp fraud exists,” cited Nign.
According to Nign the problem is so bad that no single insurance commissioner can address the culture of corruption. “The assistance of an aggressive attorney general must be combined with enforcement powers of the insurance commissioner to clean house,” cited Nign, who enthusiastically expressed support for Jerry Brown.
“One only needs to look at the recent extortion attempt by the insurance companies of John Garamendi, which forced him to seek assistance of the U.S. Department of Justice to see my point,” Nign said.
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