Restaurant Self-Insured Group Wins Third Work Comp Fraud Conviction

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Mon Oct 26, 2009 5:00am EDT

- California Restaurant Mutual Benefit Corporation Has Two Cases Pending




SACRAMENTO, Calif., Oct. 26 /PRNewswire/ -- The California Restaurant Mutual
Benefit Corporation (CRMBC) announced today another conviction for felony
Workers' Compensation fraud committed against one of its employer members.
Armando Landa pleaded guilty in Ventura County to one count of Work Comp fraud
after being arrested for collecting benefits illegally and making false
statements while an employee of CRMBC member Chicago for Ribs in Ventura.

Landa received over $30,000 in tax free disability payments while receiving
treatment over a 15 month period. During this period he took a job at another
restaurant. At a deposition following his arrest, Landa denied working at any
job since the injury. Intercare, the claims management company working for
CRMBC, used its fraud investigation unit to develop information for the
California Department of Insurance, Fraud Division. The District Attorney for
the County of Ventura prosecuted the case.

"Fraud hurts everybody," commented David Mitchell, Chair of the CRMBC Board,
the largest California Workers' Compensation program of its kind. "Employers
face a challenging economy and Work Comp fraud makes it that much tougher. It
can cost jobs. Our aggressive anti-fraud campaign is one of the reasons that
we have been able to cut costs for our employer members." 

CRMBC employer members have 24 hour access to nurses for claims support
through the CHSI Solutions Hotline. The CHSI Hotline also features a
confidential fraud report service. CHSI, the program administrator for CRMBC,
has built a secure member website for real time access to claims information
and safety resources and has developed Connections, a patent pending web based
management system for Workers' Compensation self-insured groups and captive
insurance programs. 

"Work Comp fraud goes beyond the few employees who abuse the system," said Ron
Paine, Vice President of Risk Control for CHSI. "Phony providers and double
billing are a major problem.  Employees can be taken advantage of by
unscrupulous attorneys. Our new One Source doctor network and our employee
support program are going to help us in beating Work Comp fraud."

About CRMBC: 
The California Restaurant Mutual Benefit Corporation is the state's largest
Workers' Compensation self-insured group. It began operations on January 1,
2005 and is regulated by the Office of Self-Insurance Plans, Department of
Industrial Relations. www.crmbc.com

About CHSI: 
CHSI manages Workers' Compensation self-insured group programs in California
and Nevada that have returned over $22 million to employer members. With
nearly $2 billion of employer payroll in its self-insured groups, CHSI has
developed patent-pending technology for program management to support the
company's continued expansion. www.chsi-nv.com


SOURCE  California Restaurant Mutual Benefit Corporation

Joe Burgess, 1-888-529-1034, jburgess@chsi-ca.com, for  California Restaurant
Mutual Benefit Corporation
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